H World Group’s Strong Q4 Performance and Growth Prospects Justify Buy Rating and Increased Price Target

Bank of America Securities analyst Ronald Leung reiterated a Buy rating on H World Group (HTHT – Research Report) today and set a price target of $47.00.

Ronald Leung has given his Buy rating due to a combination of factors including H World Group’s strong financial performance in the fourth quarter of 2024. The company’s adjusted EBITDA surpassed expectations, reaching RMB1,246 million, which was a 10% increase year-over-year and 3% above the firm’s estimates, driven by better-than-expected revenue. Excluding one-time items, the core EBITDA would have been even higher at RMB1,731 million.
Moreover, the company demonstrated robust revenue growth, exceeding both management’s guidance and analyst estimates. With a significant number of net hotel openings and a promising pipeline, H World Group is well-positioned for future growth. The company’s dividend declarations also reflect a solid return to shareholders. These positive indicators, along with the potential for gradual improvement in revenue per available room (RevPAR), support the Buy rating and the increased price objective of USD 47.