Morgan Stanley Starts Atour Lifestyle Holdings (ATAT) at Overweight, Says Earnings Provide a Cushion

Morgan Stanley analyst Dan Chee initiates coverage on Atour Lifestyle Holdings (NASDAQ: ATAT) with a Overweight rating and a price target of $36.00.

The analyst comments "We initiate coverage of Atour with an Overweight rating and a price target of US$36, implying >80% potential upside. Atour is trading at 11x forward EV/EBITDA and 18x P/E on consensus' estimates while its EBITDA and net income are growing at a ~30% CAGR based on our more conservative-than-consensus estimates. The earnings supports in place for the next few years provide a cushion to the stock price, even if the economy remains sluggish for longer than expected (our bear case implies 30% downside)."

For an analyst ratings summary and ratings history on Atour Lifestyle Holdings click here. For more ratings news on Atour Lifestyle Holdings click here.

Shares of Atour Lifestyle Holdings closed at $19.48 yesterday.

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