So far this week the Mantra Group Ltd (ASX: MTR) share price has been amongst the biggest movers on the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).
As of yesterday's close, week-to-date the leading accommodation provider's shares have gained a solid 7%.
But according to one leading broker there could still be significant upside left for its shares in the months ahead.
According to a research note out of Citi on Tuesday, its analysts have upgraded Mantra's shares to a buy rating and raised its price target to $3.25.
If its shares were to rise to this level it would mean a gain of almost 12% from the last close price.
Citi appears to be pleased by management's decision to acquire the Art Series hotels for $52.5 million, believing that it is a good way to fight the Airbnb threat.
Should you invest?
I would have to agree with Citi and believe that Mantra is a great option for investors right now. Not only are its shares changing hands at a reasonable 20x trailing earnings, they also provide a generous fully franked 3.6% dividend.
Whilst this earnings multiple is a premium over the market average, I believe the Australian tourism boom is likely to result in above-average earnings growth that more than justifies this.
In light of this, I would choose it over rivals Event Hospitality and Entertainment Ltd (ASX: EVT) and Crown Resorts Ltd (ASX: CWN).
