UPDATE: Morgan Stanley Reiterates Overweight Rating, Removes PT on China Lodging Group Ltd. Following In-Line 1Q14 Results

In a report published Wednesday, Morgan Stanley analyst Lin He reiterated an Overweight rating on

, but removed the $29.40 price target. In the report, Morgan Stanley noted, “China Lodging reported in-line 1Q14 results with non-GAAP net income (Rmb-13mn) in line with our forecast of Rmb-12mn and EBITDA (Rmb112mn) 3% below our forecasts. Facing strong headwinds in 1Q, China Lodging's same hotel RevPAR recorded a 1% decline, the lowest since 2011 but still outperforming its peers. The company's investments in the mid-scale brand and product upgrade will make it better positioned for competition, in our view. We remain Overweight on the stock despite short-term headwinds as we are positive on long-term travel demand growth and its strong execution.” China Lodging Group Ltd. closed on Tuesday at $21.66.