Brean Murray Carret Raises Price Target on 7 Days Group Holdings (SVN), Strong Growth Story
Tweet
Share
E-mailGet Alerts SVN Hot Sheet
Price: $13.79 --0%
Rating Summary:
3 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Brean Murray Carret & Co. is reaffirming its Buy rating on shares of 7 Days Group Holdings (NYSE: SVN) while raising its price target from $27 to $30 following its second quarter results.
The company reported solid second quarter results with revenues beating and expectations and as margins rose to 25.8 percent in the quarter from 24.6 percent in their second quarter of 2010. Margin growth was largely due to stronger top line growth and cost controls.
SVN released its third quarter guidance noting that revenues are expected to increase by 30-32 percent for the quarter, slightly below the consensus. The firm believes that this will be proven to be conservative. SVN also reiterated its 2011 revenue growth guidance of 32-36 percent.
The company opened 18 L/O hotels and 85 F/M hotels during the quarter and noted that it is taking significant efforts to reach its annual level of opening up 80 L/O hotels. They increased their FM opening target for the year from 210 to 240 hotels.
An analyst at Brean Murray Carret comments, "we would recommend that investors capitalize on the recent weakness in the sector and accumulate SVN shares at the current level."
For more ratings news on 7 Days Group Holdings click here and for the rating history of 7 Days Group Holdings click here.
Shares of 7 Days Group Holdings closed at $18.26 yesterday.
The company reported solid second quarter results with revenues beating and expectations and as margins rose to 25.8 percent in the quarter from 24.6 percent in their second quarter of 2010. Margin growth was largely due to stronger top line growth and cost controls.
SVN released its third quarter guidance noting that revenues are expected to increase by 30-32 percent for the quarter, slightly below the consensus. The firm believes that this will be proven to be conservative. SVN also reiterated its 2011 revenue growth guidance of 32-36 percent.
The company opened 18 L/O hotels and 85 F/M hotels during the quarter and noted that it is taking significant efforts to reach its annual level of opening up 80 L/O hotels. They increased their FM opening target for the year from 210 to 240 hotels.
An analyst at Brean Murray Carret comments, "we would recommend that investors capitalize on the recent weakness in the sector and accumulate SVN shares at the current level."
For more ratings news on 7 Days Group Holdings click here and for the rating history of 7 Days Group Holdings click here.
Shares of 7 Days Group Holdings closed at $18.26 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Viking Holdings (VIK) PT Raised to $82 at Mizuho
- Bernstein SocGen on Meta Platforms Inc. (META): 'Risk-reward remains attractive'
- Cummins (CMI) PT Lowered to $675 at Jefferies
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Brean Murray Carret & Co.Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
