Oppenheimer Reiterates Outperform on Ctrip.com (CTRP) Ahead of 2Q Results

August 17, 2016 10:50 AM EDT
Get Alerts CTRP Hot Sheet
Price: $42.82 -0.07%

Rating Summary:
    18 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 15 | New: 18
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Oppenheimer reiterated an Outperform rating and $55.00 price target on Ctrip.com (NASDAQ: CTRP) ahead of the company's 2Q earnings report. Oppenheimer is expecting CTRP to report solid results and believes that S&M will offer the most opportunity for a 2Q upside after analyzing the revenue and S&M growth spread between 2Q and 1Q.

Analyst Jed Kelly commented, "We attribute CTRP's recent 10% appreciation to solid China consumer Internet earnings and investors expecting upside to 2Q margins. A stable travel environment suggests CTRP will likely beat Street's revenue/margin estimates, with sales & marketing offering the most opportunity for upside. However, with margin expansion as the main near-term catalyst, increasing competition from sub-scale players, and QUNR's ongoing China Southern dispute, could produce cautious commentary around 3Q profit, thus causing near-term volatility in shares, despite a potential 2Q EBIT beat, in our view. We believe CTRP is well positioned to leverage China's transition to a consumption economy by consolidating its growing online travel market, and would take advantage of any near-term weakness to accumulate shares. We maintain our DCF-based $55 price target on higher outer year opex leverage."

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 $46.46 yesterday.



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