Why Atour Lifestyle Holdings (ATAT) Is Rising Today

Atour Lifestyle Holdings (ATAT) is advancing 3% after Citi raised its price target on the shares to $35.80 from $30.50. The bank kept a Buy rating on the stock.

ATAT is a China-based hotel chain that also seeks to sell products to its guests by placing them in their rooms.

An aerial view of a high-rise hotel illuminated in the night sky.

Why Citi Raised Its Price Target

The bank increased its price target on ATAT after shifting to base its outlook on the name to their 2025 estimates from their 2024 estimates. Additionally, Citi believes that ATAT can continue to post strong financial results, driven by the success and high popularity of its products and services. Further, the firm’s offerings have proven to be very profitable for its franchisees, Citi reported. Additionally, the bank expects the company’s retail business to perform well this year.

More About ATAT

Analysts on average expect the company’s earnings per share to jump to $11.34 this year from $9.12 in 2024. The mean estimate calls for its top line to rise to $9 billion from $7.16 billion. The shares are changing hands at a forward price-to-earnings ratio of 58 times.

In the last month, the shares have jumped 22%, while they have advanced 17.5% in the last three months and 18.5% so far in 2025.

While we acknowledge the potential of ATAT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ATAT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.