UPDATE: Oppenheimer Reiterates Outperform Rating, Raises PT on China Lodging Group on In-Line 4Q12 & Guidance

In a report published Monday, Oppenheimer reiterated its Outperform rating on China Lodging Group HTHT, and raised its price target from $18.00 to $21.00. Oppenheimer noted, “HTHT delivered strong top-line in 4Q12 with 36% y/y growth (forex neutral), fueled by its network expansion. Meanwhile, blended RevPAR and margins were dragged down by a higher mix of ramping-up hotels and more hotels in lower-tier cities, resulting in a shortfall in the non-GAAP EPS ($0.06 vs. our $0.09 est.) and EBITDA (2% lower). Mgmt expects 2-3% mature hotel RevPAR growth (mainly ADR) in 2013 and also unveiled an expansion plan which illustrates a more aggressive approach to the midscale market: 275-315 new economy hotels (Hanting and Hi Inn), 55-65 mid-scale hotels (Ji and Starway), and 1 upscale (Joya). We anticipate 28% forex neutral rev. growth and flat EBITDA margin for 2013. Raising our PT to $21 from $18.” China Lodging Group closed on Friday at $17.24.