In a report released today, Walter Woo from CMB International Securities maintained a Buy rating on Atour Lifestyle Holdings (ATAT – Research Report), with a price target of $33.31.
Walter Woo’s rating is based on a combination of factors that suggest potential growth for Atour Lifestyle Holdings despite current challenges. The company has experienced a decline in revenue per available room (RevPAR) in early 2025, influenced by unfavorable weather and a high comparison base. However, the retail segment has shown robust growth, with sales increasing by 50% or more, particularly during key events like the 8 March Festival.
Furthermore, Atour’s conservative guidance for 2025, projecting a 25% or higher sales growth and 35% or higher retail sales growth, indicates room for sequential improvement. This outlook is supported by a potential recovery in business travel demand and the opening of new stores, which could enhance RevPAR. Additionally, the company’s product pipeline and strong retail performance bolster confidence in future growth. As a result, Woo maintains a Buy rating and raises the target price to $33.31, reflecting an optimistic view of the consumer sector in 2025.
In another report released on March 25, Bank of America Securities also reiterated a Buy rating on the stock with a $37.20 price target.