Goldman Sachs reiterated the purchase rating for Shangri-La (0069.HK), with a target price of HK$19; it is expected that its average revenue per room (RevPar) for the third quarter will increase by 15%-20% year on year, continuing the growth trend in the first half of the year; based on reservation analysis, it is expected that the fourth quarter will continue to improve; however, in response to Thailand's floods and recent land purchases, it lowered its earnings per share forecast for the year 11 by 2% and 2%/1% for 12/13; indicating that the stock is undervalued, and the recent weak stock price has reflected a decline of about 20% in average revenue per room per room in 2012.

Shangri-La rose slightly by 0.3% to HK$13.74 yesterday.