Brean Murray Carret Raises Price Target on China Lodging (HTHT), 2011 is the Year for Investments as 2012 is the Year for Growth

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Brean Murray Carret & Co. is maintaining its Buy rating on shares of China Lodging Group (NASDAQ: HTHT) and is raising its price target from $22 to $26 despite a Q1 results which came in below expectations.

The firm reports that the downside was due to significant margin contraction upon prolonged seasonality and accelerated investment building up new stores. It notes that 2011 will be a key investment year for the company.

An analyst at the firm comments, "HTHT is set to deliver robust margin expansion on the back of strong revenue growth in 2012, which offers 50%+ valuation expansion down the road."

For more ratings news on China Lodging Group click here and for the rating history of China Lodging Group click here.

Shares of China Lodging Group closed at $22.30 yesterday, with a 52 week range of $13.85-$27.50.

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