UPDATE: Bank of America Raises PO to $41.80 on Home Inns & Hotels Post Solid Quarter

Bank of America reiterated its Buy rating on Home Inns & Hotels

and increased its price objective from $37.10 to $41.80. Bank of America commented, "As we approach 2013, we introduce an updated price objective, which is based on 2013E EV/EBITDA. We raise our PO to US$41.8 from US$37.1 accordingly, implying 55% potential upside. The stock is trading at 5.4x our 2013E EV/EBITDA. We believe there is potential margin expansion for the sector next year as the improvement in China's economy may boost RevPAR while the lower inflation environment could slow down the pace of cost increase. Home Inns & Hotels closed at $27.45 on Tuesday.