UPDATE: Credit Suisse Cuts PT to $17 on China Lodging Group

Credit Suisse lowers its price target $1 to $18 on Outperform-rated China Lodging Group

as margin pressure displayed in latest quarter report should remain through 2012. Credit Suisse says, "The margin pressure is higher than our previous projection, and we expect it to remain so in 2012. We estimate the labour and utility inflation (negative) will offset the lower new hotel loss and preopening expense ratio (positive), leading to a flattish EBITDA margin for 2012. This is the major reason behind our EPS forecast cut." HTHT closed at $14.93 a share on Wednesday.