UPDATE: Morgan Stanley Raises PT on China Lodging Group on Emerging Buying Opportunity

In a report published Friday, Morgan Stanley reiterated its Overweight rating on China Lodging Group HTHT, and slightly raised its price target from $18.70 to $19.00. Morgan Stanley noted, “We recommend buying on dips as the weaker-than-expected 4Q and margin outlook appear fully priced in after the stock price correction. We think the mix shift to mid-scale brand creates long-term value by lifting differentiation and pricing power, although it could limit margin growth in 2013.” China Lodging Group closed on Thursday at $16.51.