UPDATE: Morgan Stanley Reiterates On Home Inns & Hotels Management Following Solid 1Q14 Results

In a report published Tuesday, Morgan Stanley analyst Lin He reiterated an Equal-Weight rating on

, but removed the $35.00 price target. In the report, Morgan Stanley noted, “Home Inns reported good 1Q14 results with adjusted EBITDA (+18% YoY) and adjusted net income (+210%) 13% and 6% above our expectation, respectively. The positive result was achieved through stable margin of mature hotels due to the cost efficiency program, continued mix shift towards high-margin franchise business and lower pre-opening expense. However, RevPAR trend remains weak with same hotel RevPAR down 2.2% yoy and blended hotel RevPAR dropping 3% yoy. We maintain an EW rating on the stock.” Home Inns & Hotels Management closed on Monday at $27.95.