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H World price target raised to $47 from $45 at Morgan Stanley

Morgan Stanley raised the firm’s price target on H World (HTHT) to $47 from $45 and keeps an Overweight rating on the shares. The firm updated its forecasts following FY24 results and introduced FY25 estimates, noting that it added RMB300M withholding tax annually for FY25-FY27 as per company guidance. The firm also rolled forward its DCF valuation to use FY25 as FY0, and as the company increases in size, Morgan Stanley lowers the medium-term growth rate from 10% to 8%.

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