UPDATE: Oppenheimer Lowers Home Inns & Hotels Management's PT
According to a research report published today, Oppenheimer has lowered Home Inns & Hotels Management's (NASDAQ: HMIN) PT from $43 to $38.
“We expect HMIN's network expansion to accelerate and the integration of the Motel 168 acquisition to have run smoothly in 4Q11. However, global economic deterioration and the slowdown of Chinese economic activities appear to impact China's SME activities and delay the ramp-up of HMIN's newly opened hotels. An inflationary environment and high mix of new hotels have also put high pressure on margins. We therefore conservatively adjust our 4Q11/2012 forecasts. While visibility on the 2012 environment remains low, we think HMIN's current valuation has factored in such uncertainty,” Oppenheimer said in the report.
Oppenheimer maintains its Outperform rating for Home Inns & Hotels Management, which is currently trading at $30.63.
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