Goldman Sachs Upgrades China Lodging Group (HTHT) to Conviction Buy

Goldman Sachs upgraded China Lodging Group (NASDAQ: HTHT) to its Conviction Buy List with a price target of $27, suggesting 62 percent upside.

The firm cited: "(1) A shift in focus from cyclical margin volatility to its structural growth story in 2012E/13E; (2) Its RevPAR growth, the key driver of valuation, improved sequentially to a healthy 4% yoy in 2Q for mature hotels outside Shanghai, up from -1% in 1Q; (3) As an early-mover in product diversification, we expect the company to accelerate it efforts and to grow its higher-end/lower-end products to 20% of portfolio by 2013E, up from 8% in 2Q11, bringing more opportunities to tap a wider customer spectrum and optionalities for same-city growth."

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 $16.63 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• New Street Research Upgrades Micron Technology (MU) to Buy
• Wolfe Research Upgrades Abbott Labs (ABT) to Outperform
• RBC Capital Upgrades LTC Properties (LTC) to Outperform