Huazhu Group Upgraded To 'Buy' From 'Neutral' At Goldman Sachs

Goldman Sachs analyst Justin Kwok upgraded Huazhu Group (HTHT) to 'Buy' from 'Neutral,' with a price target of $38, down from $38.50. While the company's path of recovery is uncertain, the current share price weakness is a good opportunity for investors to buy a "quality name" at an attractive valuation, Kwok tells investors in a research note.

The current economic environment will unlikely derail long-term lodging demand or leading national hotel chains' positions, says the analyst. Further, Kwok believes investors will gradually look beyond the near-term earnings impact with expectations lowered, and re-focus on Huazhu's "market-leading hotel conversion pipeline."

 

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