UPDATE: Credit Suisse Initiates Home Inns at Outperform Strong Demand and Supply Dynamics

Credit Suisse initiated coverage on Home Inns

with an Outperform rating and a $38.30 price target. Credit Suisse said, "We believe that the strong demand for branded economy hotels in China is mainly driven by its robust macro economy, fast-growing SMEs, rising incomes, consumption upgrades, lifestyle changes, convenient infrastructure and policy support. On the supply side, the sector is very fragmented with limited quality supply. We expect Home Inns (23% market share, followed by 7 Days'14% and China Lodging's 11%) to further consolidate the industry." Home Inns closed at $29.18 on Friday.