Analyst Lydia Ling of Citi maintained a Buy rating on Atour Lifestyle Holdings (ATAT – Research Report), boosting the price target to $38.00.
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Lydia Ling’s rating is based on Atour Lifestyle Holdings’ impressive financial performance and strategic initiatives. The company reported strong first-quarter results for 2025, with a notable 32% year-over-year increase in non-GAAP net profit and a 30% rise in revenue. This growth is attributed to successful store expansion and a robust retail sector, prompting management to raise their full-year revenue guidance.
Additionally, Atour’s commitment to shareholder value is evident through its dividend declaration and a substantial share repurchase program. Despite some uncertainties in RevPAR, the company’s rapid hotel expansion and focus on sleep-focused retail are expected to sustain growth. The management’s strategic goal of reaching 2,000 stores by year-end and the successful launch of new products further reinforce the positive outlook, justifying the Buy rating.
Ling covers the Consumer Cyclical sector, focusing on stocks such as Atour Lifestyle Holdings, Samsonite International SA, and Shangri-La Asia. According to TipRanks, Ling has an average return of 13.1% and a 60.00% success rate on recommended stocks.
In another report released yesterday, Macquarie also maintained a Buy rating on the stock with a $39.00 price target.