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Investing.com - Benchmark has reiterated its Buy rating and $48.00 price target on H World Group Ltd. (NASDAQ:HTHT), currently trading at $35.16, following the company’s second-quarter 2025 earnings report. The strong Buy rating aligns with the broader analyst consensus, as tracked by InvestingPro.
The research firm described the quarterly results as "a clear demonstration of the company’s resilience and industry leadership" despite macroeconomic uncertainties and RevPAR pressure from hotel oversupply in the market.
Benchmark highlighted management’s reaffirmation of fiscal year 2025 guidance as evidence of the strength in H World Group’s asset-light managed and franchised business model, even with lowered RevPAR expectations.
The firm also pointed to H World Group’s transparent disclosure of gross operating profit as a positive factor that should reinforce market confidence in margin sustainability, along with ongoing supply chain optimization expected to reduce operating costs.
While noting that RevPAR may remain fluid amid the current economic environment, Benchmark expressed confidence that H World Group’s focus on high-quality, asset-light growth positions the company well for margin expansion and downside protection.
In other recent news, Huazhu Group Ltd reported its second-quarter earnings for 2025, exceeding earnings per share (EPS) expectations with a reported EPS of $3.88, compared to the forecasted $3.80. However, the company’s revenue did not meet expectations, coming in at $6.15 billion against an anticipated $6.32 billion. Despite the revenue miss, the earnings call seemed to boost investor confidence. No analyst upgrades or downgrades were reported in connection with these earnings. These developments are part of the company’s recent financial activities. Investors are closely monitoring the company’s performance following these results. The company’s stock movement, not discussed here, may reflect these recent earnings announcements.
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