Nomura maintained the Grand Hotel (00045-HK) buying rating while raising the target price from HK$12.8 to HK$13.4; the company said on Friday that EBITDA for FY09 fell 35% to HK$924 million, in line with Nomura's expectations. Nomura said that the business conditions of major hotels rebounded strongly in the fourth quarter of 2009, mainly due to improvements in the Hong Kong market. It is expected that this upward trend will continue until 2010. Furthermore, the majority shareholder, the Kadoorie family, may increase its shareholding ratio, which is also expected to support the valuation of the stock. According to Nomura, the current stock price of the stock is 42% off the net asset value, and the valuation is not high. The Grand Hotel closed at HK$11.34 on Friday.