Stock Price & Analysis

Based on the analysis of HTHT stock, here is a concise recommendation:

Buy HTHT stock as it shows short-term strength with a +3.11% gain in regular market hours, supported by neutral RSI and positive MACD signals. However, exercise caution due to the recent analyst downgrade and sector challenges. Consider holding until the earnings report on March 20 for clearer direction.

The price prediction for HTHT stock in 2025 is expected to range between $38 and $42, with a potential upside to $40 if it breaks above the Fibonacci resistance level. The current price of $38.15 suggests a neutral RSI, and the HSBC downgrade to Hold with a $32.40 target adds bearish pressure. However, positive sector trends could support the stock's upward movement.

The S1 support level for HTHT Stock is $35.53 ,The R1 resistant level for HTHT Stock is $38.53.

As of the end of day on 2025-03-18, the price of HTHT Stock was $38.47.

The target price for HTHT Stock according to analyst rating is 32.40, with the highest price target at 32.40 and the lowest at 32.40. Analysts have a Hold rating on HTHT Stock overall.

The market cap of HTHT is $125.7B.

Analysis and Insights

To determine whether H World Group Ltd (HTHT) is overvalued, we analyze its financial performance and valuation metrics.

Valuation Metrics:

• Price-to-Earnings (P/E) Ratio: HTHT's forward P/E ratio is not directly provided, but based on its trailing earnings, the stock appears fairly valued relative to its growth prospects.

• Enterprise Value-to-EBITDA (EV/EBITDA): This metric is not explicitly provided, but the company's improving EBITDA margins suggest efficient operations.

• Price-to-Sales (P/S) Ratio: With a P/S ratio reflecting its revenue growth, HTHT's valuation aligns with industry standards.

• Price-to-Book (P/B) Ratio: The P/B ratio indicates a reasonable valuation given the company's asset base.

Financial Performance:

• Revenue Growth: HTHT has shown consistent revenue growth, with Q3 2024 revenue at $899.4 million, up from $734.5 million in Q1 2024.

• Net Income: Net income has also increased, reaching $177.7 million in Q3 2024, demonstrating strong profitability.

• Gross Margin: The gross margin has improved, reflecting efficient cost management.

Market Sentiment:

• Analyst Opinion: HSBC recently downgraded HTHT to Hold with a $32.40 target, suggesting some caution.

• Recent Price Movement: Despite the downgrade, HTHT's stock rose 3.11% on the last trading day, indicating positive market sentiment.

Conclusion:

While HTHT may appear premium in some metrics, its strong revenue and net income growth, along with improving margins, support its valuation. The analyst downgrade introduces caution, but overall, HTHT does not seem significantly overvalued.

H World Group Ltd is a company principally engaged in multi-brand hotel operation. The Company operates its businesses through two segments, including Legacy Huazhu and Legacy DH. The Company’s brands include Economy Hotel, Midscale Hotel, Upper Midscale Hotel, Upscale Hotel and Luxury hotel. The Company's hotels are operated under three different models, including leased, owned, franchised and franchised hotels. The Company owns hotels such as HanTing Hotel, Ni Hao Hotel, JI Hotel, Orange Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Manxin Hotel and Steigenberger Icon and Song Hotels. The Company mainly conducts its businesses in the domestic market and overseas markets.

HTHT stock is predicted to reach $60-$80 by 2030, driven by H World's global expansion and strong revenue per available room growth. The company's diversified brands and operational efficiency position it well for long-term growth.

HTHT has a total of 26985 employees.