Update shared on 27 Nov 2025
Fair value Increased 6.40%Analysts have raised their price target for Atour Lifestyle Holdings from $43.77 to $46.57. This change reflects confidence in the company’s robust revenue growth, margin improvements, and expanding hotel and retail operations.
Analyst Commentary
Bullish Takeaways- Analysts are raising price targets across the board, reflecting confidence in Atour Lifestyle's strong financial performance and future prospects.
- The company’s robust Q3 results, including 38% year-over-year revenue growth and a 26% increase in non-GAAP net profit, signal continued successful execution.
- Full-year and 2025 revenue guidance have been revised upward to approximately 35% growth, driven by a thriving hotel business and rapid expansion in sleep-focused retail brands.
- Atour’s status as the largest upper mid-scale hotel operator in China, combined with industry-leading revenue and profit growth projections of 20% over the next 3 to 5 years, set it apart from peers and justify optimistic valuations.
- While growth prospects are strong, some analysts highlight the aggressive hotel expansion and rapid scaling in retail as areas that could pressure margins if not managed effectively.
- Midscale segment growth, such as the expansion of Atour Light hotels, requires significant investment and operational discipline, raising potential execution risks.
- Upside potential in the share price has already been recognized in recent target upgrades, suggesting that any slowdown in growth or unexpected cost pressures could quickly affect sentiment.
What's in the News
- Atour Lifestyle Holdings confirmed earnings guidance for the full year 2025, projecting total net revenues to increase by 35% compared to 2024 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from $43.77 to $46.57, reflecting positive sentiment on future performance.
- Discount Rate has risen slightly, moving from 8.99% to 9.00%.
- Revenue Growth expectations have decreased, from 23.29% to 22.04%.
- Net Profit Margin has improved modestly, rising from 17.94% to 18.08%.
- Future P/E ratio has edged up to 20.30x compared to the previous 20.25x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.