Deutsche Bank Comments on Ctrip (CTRP) Internet Security Incident
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Price: $34.93 --0%
Rating Summary:
22 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
22 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Deutsche Bank maintained a Buy rating on Ctrip.com (NASDAQ: CTRP) with a price target of $54.00. Analyst Vivian Hao said investors should expect "headwinds" after security loopholes were discovered.
"A Chinese third-party internet security information exchange platform (wooyun.org) on 22 March exposed two loopholes in Ctrip's IT system that could lead to potential leaks of its users' credit card information. The incident triggered immediate and widespread concerns among many Ctrip users on major online/mobile social platforms in China, including Weibo and Wechat," said Hao.
"The incident may have impaired Ctrip's brand as a safe and trustworthy transaction-enabled OTA with associated reputational risk exposure. We expect an increasing number of Ctrip users to terminate their bank card bundling (at least temporarily) or halt transactions over online payment security concerns. More importantly, our checks suggest the incident has raised across-the-board concerns over online payment security and customer personal information privacy breaches beyond just Ctrip. We expect more regulatory supervision to increase over time. Also, online/mobile payment on ecommerce platforms will be subject to increased security checks. Yet, with no material leaks of sensitive user information and timely action undertaken by Ctrip, we expect the real impact on user experience to be limited. We maintain our long-term bullish view on Ctrip and suggest investors buy the stock on any potential share price dip due to headline headwinds," added the analyst.
For an analyst ratings summary and ratings history on Ctrip.com click here. For more ratings news on Ctrip.com click here.
Shares of Ctrip.com closed at $49.49 yesterday.
"A Chinese third-party internet security information exchange platform (wooyun.org) on 22 March exposed two loopholes in Ctrip's IT system that could lead to potential leaks of its users' credit card information. The incident triggered immediate and widespread concerns among many Ctrip users on major online/mobile social platforms in China, including Weibo and Wechat," said Hao.
"The incident may have impaired Ctrip's brand as a safe and trustworthy transaction-enabled OTA with associated reputational risk exposure. We expect an increasing number of Ctrip users to terminate their bank card bundling (at least temporarily) or halt transactions over online payment security concerns. More importantly, our checks suggest the incident has raised across-the-board concerns over online payment security and customer personal information privacy breaches beyond just Ctrip. We expect more regulatory supervision to increase over time. Also, online/mobile payment on ecommerce platforms will be subject to increased security checks. Yet, with no material leaks of sensitive user information and timely action undertaken by Ctrip, we expect the real impact on user experience to be limited. We maintain our long-term bullish view on Ctrip and suggest investors buy the stock on any potential share price dip due to headline headwinds," added the analyst.
For an analyst ratings summary and ratings history on Ctrip.com click here. For more ratings news on Ctrip.com click here.
Shares of Ctrip.com closed at $49.49 yesterday.
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