Oppenheimer Reiterates Outperform Rating, $32 PT for Home Inns & Hotels Management
In a quarterly update published earlier today, Oppenheimer Holdings reiterated its Outperform rating and $32.00 price target for Home Inns & Hotels Management Inc. (NASDAQ: HMIN).
Oppenheimer went on to say “HMIN delivered a mixed 1Q. Top-line of $199.4M beat our estimate/high-end guidance by 2.6%/1.2%, but margins missed our expectations on higher personnel costs and a higher mix of new hotels in lower tier cities where ramp-up is slower. Motel 168 performed better than expected with RevPAR of RMB111 topping our estimate by 10% and a y/y margin improvement. Motel 168 progress appears well on track. Management's 2Q guidance is in line with our original estimate and we don't expect significant downside risk to our existing conservative estimates. Current low valuation provides an attractive risk/reward profile for long-term holders, we think.”
Home Inns & Hotels Management Inc. closed yesterday at $22.84.
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