ATAT offerings travel accommodations with a branded lifestyle, based in Shanghai. Chinese tourism is growing rapidly with rising disposable incomes, which analysts view will lead to advantaged brand driven growth. Earnings growth has averaged over 140% annually over the past 5 years and analysts expect 25% annual growth going forward. It trades at 27x earnings and supports a robust 45% ROE. Cash reserves are prudently being used to buy back shares. We recommend setting a stop-loss at $34, looking to achieve $49 -- upside potential of 22%. Yield 1.7%
Our PAST TOP PICK with ATAT has triggered its stop at $34. To remain disciplined, we recommend covering the position at this time.