Update shared on 25 Nov 2025
Fair value Increased 7.31%Analysts have increased their price target for H World Group from $46.09 to $49.47, citing improved revenue growth expectations and slightly higher profit margins as key factors in the upward revision.
Analyst Commentary
Recent research provides valuable insight into the factors influencing H World Group's revised price target, highlighting both strengths and ongoing challenges in the company's performance and outlook.
Bullish Takeaways- Bullish analysts highlight the company's improved revenue growth trajectory, which has contributed to increased confidence in future earnings potential.
- There is recognition of strengthening trends across core business segments, pointing to overall operational resilience and effective management strategies.
- Stable or slightly improving profit margins have been noted, supporting a more constructive view of the company’s ability to sustain profitability in a competitive market.
- Optimism remains regarding management's execution capabilities, particularly in capitalizing on opportunities for expansion and enhancing shareholder value.
- Bearish analysts continue to express concern about pockets of slower demand in specific segments, which could present headwinds to achieving sustained outperformance.
- Some caution persists around macroeconomic uncertainties and their potential impact on near-term booking volumes and revenue streams.
- There is a watchful stance on rising costs, as inflationary pressures may affect margin expansion efforts moving forward.
- The competitive landscape remains a point of focus, with analysts noting that increased competition could limit pricing power and growth in certain markets.
What's in the News
- H World Group Limited has provided revenue guidance for the fourth quarter of 2025, projecting revenue growth in the range of 2% to 6% compared to the fourth quarter of 2024, or 3% to 7% excluding DH (Key Developments).
- The company announced the signing of three new JI Hotels in Kuala Lumpur, Malaysia and Phnom Penh, Cambodia, marking H World's debut in Malaysia and continued expansion in Southeast Asia (Key Developments).
- The new JI Hotel in Kuala Lumpur's city center is expected to open in the fourth quarter of 2026, establishing H World’s first presence in Malaysia (Key Developments).
Valuation Changes
- Fair Value Estimate has risen from $46.09 to $49.47, reflecting increased optimism in market valuation.
- Discount Rate has fallen slightly from 10.11% to 9.99%, suggesting a modest decrease in perceived risk.
- Revenue Growth Projection has increased from 5.80% to 6.34%, indicating higher expected growth rates.
- Net Profit Margin has improved from 20.71% to 21.56%, highlighting expectations for stronger profitability.
- Future P/E Ratio has edged up from 22.00x to 22.53x, implying marginally higher valuation multiples for anticipated earnings.
Disclaimer
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