Assessing Atour Lifestyle Holdings (NasdaqGS:ATAT) Valuation After Upgraded Analyst Earnings and Buy Rating

Atour Lifestyle Holdings (ATAT) just received a more favorable buy rating from analysts, as this quarter's consensus full-year earnings estimate got revised upward, which is a signal that confidence in the company's performance is trending higher.

See our latest analysis for Atour Lifestyle Holdings.

Momentum has really been building for Atour Lifestyle Holdings, with a 10.6% share price return in the past month and a total shareholder return of nearly 50% over the last year. The recent analyst earnings revision complements strong market gains and highlights renewed optimism for both the company’s near-term prospects and longer-term story.

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With analyst sentiment turning more bullish and impressive gains already logged, the key question now is whether Atour Lifestyle Holdings is still trading below its true value or if the market has already factored in all its growth potential.

Most Popular Narrative: 10.4% Undervalued

Atour Lifestyle Holdings last closed at $39.25, while the most widely followed narrative places fair value at $43.79. This suggests notable upside potential exists at current levels.

Significant hotel network expansion in Tier 2 and 3 Chinese cities (with 239 hotels opened in H1, 500 targeted for FY2025, and 816 more in the pipeline) positions Atour to capitalize on continuing urbanization and infrastructural improvements, which should support long-term revenue and occupancy growth as domestic travel demand rises.

Read the complete narrative.

Curious how rapid expansion, bold revenue targets, and a high-conviction strategy combine to justify this valuation? The detailed narrative reveals aggressive, sector-shaking growth assumptions that go far beyond the usual hospitality playbook. Click to uncover which ambitious projections underpin this crowd-favored price target and what could make or break it.

Result: Fair Value of $43.79 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensifying competition and heavy reliance on just a few flagship products could quickly challenge Atour's bullish outlook if demand declines.

Find out about the key risks to this Atour Lifestyle Holdings narrative.

Build Your Own Atour Lifestyle Holdings Narrative

If you think your perspective differs or you want to dig into the numbers yourself, you can create your own story in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Atour Lifestyle Holdings.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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