Citi opens ‘positive catalyst watch’ on H World

Citi analyst Lydia Ling added a “30-day positive catalyst watch” on shares of H World while keeping a Buy rating on the name with a $54 price target. The firm expect s the company’s RevPAR pressure to ease from Q4 on easier compares. The rollout of more government-supportive policies to drive the service consumption, including lodging, should underpin the leisure travel momentum in the upcoming Golden Week holiday, benefit leading hotel players like H World, the analyst tells investors in a research note. Citi believes improving earnings visibility may drive a share re-rating.