Deutsche Bank Reviews HMIN 4Q

Deutsche Bank is commenting on Home Inns & Hotels Management Inc.'s (NASDAQ: HMIN) 4Q results, which it says were “a strong beat on better-than-expected margins as new unit adds were back-end loaded. '11 revenue guidance makes sense to us given the openings schedule, and could prove conservative if pricing increases are achieved.”

“We remain comfortable w/ our and Street forecasts,” Deutsche Bank writes. “We believe the 4Q report should reinforce confidence in HMIN's track record of upside surprises and remove a key overhang on the stock (i.e., fear of a soft quarter).

“The next catalyst could be the sale of the Motel 168 chain, assuming it is purchased by a party other than HMIN at a surprisingly robust multiple (which we believe it may be). We recommend being Buyers of the stock.”

Home Inns & Hotels Management currently trades at $37.86.

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