Atour Lifestyle (NASDAQ:ATAT) Raised to "Buy" at Wall Street Zen

Key Points

• Atour Lifestyle has been upgraded to a "Buy" rating by Wall Street Zen, highlighting increasing investor confidence in the company's stock.
• Citigroup also reaffirmed a "Buy" rating with a new price target of $38.00, indicating an optimistic outlook based on recent performance.
• Atour Lifestyle reported quarterly earnings of $0.42 per share, surpassing expectations, and has set ambitious guidance for fiscal year 2025.

Atour Lifestyle (NASDAQ:ATAT - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Friday.

Separately, Citigroup reaffirmed a "buy" rating and set a $38.00 price target (up from $36.50) on shares of Atour Lifestyle in a research report on Friday, May 23rd. Four equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Atour Lifestyle has an average rating of "Buy" and an average target price of $36.63.

Atour Lifestyle Price Performance

Shares of NASDAQ:ATAT opened at $39.04 on Friday. Atour Lifestyle has a 1 year low of $18.95 and a 1 year high of $39.84. The business has a 50 day simple moving average of $35.57 and a two-hundred day simple moving average of $31.14. The firm has a market capitalization of $5.39 billion, a PE ratio of 28.29, a price-to-earnings-growth ratio of 1.31 and a beta of 0.83.

Atour Lifestyle (NASDAQ:ATAT - Get Free Report) last announced its quarterly earnings results on Tuesday, August 26th. The company reported $0.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.41 by $0.01. The firm had revenue of $344.49 million during the quarter, compared to analyst estimates of $326.00 million. Atour Lifestyle had a return on equity of 45.66% and a net margin of 16.52%. Atour Lifestyle has set its FY 2025 guidance at EPS. Equities research analysts expect that Atour Lifestyle will post 1.24 EPS for the current fiscal year.

Atour Lifestyle announced that its board has approved a stock repurchase plan on Thursday, May 22nd that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On Atour Lifestyle

A number of institutional investors have recently modified their holdings of the business. Squarepoint Ops LLC grew its position in shares of Atour Lifestyle by 3.8% during the 2nd quarter. Squarepoint Ops LLC now owns 29,458 shares of the company's stock valued at $958,000 after acquiring an additional 1,073 shares during the period. Nomura Holdings Inc. acquired a new stake in shares of Atour Lifestyle during the 2nd quarter valued at about $5,945,000. Hollencrest Capital Management acquired a new stake in shares of Atour Lifestyle during the 2nd quarter valued at about $29,000. Lazard Asset Management LLC grew its position in shares of Atour Lifestyle by 2.5% during the 2nd quarter. Lazard Asset Management LLC now owns 243,921 shares of the company's stock valued at $7,929,000 after acquiring an additional 5,956 shares during the period. Finally, BI Asset Management Fondsmaeglerselskab A S grew its position in shares of Atour Lifestyle by 35.2% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 58,120 shares of the company's stock valued at $1,889,000 after acquiring an additional 15,127 shares during the period. 17.79% of the stock is currently owned by institutional investors and hedge funds.

About Atour Lifestyle

Atour Lifestyle Holdings Limited, through its subsidiaries, develops lifestyle brands around hotel offerings in the People's Republic of China. The company provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products.

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