Ctrip.com (CTRP) PT Chopped to $58 at Oppenheimer; 'Outperform' Maintained

Oppenheimer analyst Ella Ji lowered her price target on Ctrip.com (NASDAQ: CTRP) to $58.00 (from $75.00) following Q3 results but maintained an Outperform rating.

Ji commented, "CTRP revealed a new round of more aggressive investment plans, and 4Q14 operating expenses will likely increase 100% y/y. While we anticipate a gradual margin recovery afterwards, the prior 20%+ level may be difficult to achieve. Additionally, 4Q growth guidance of 30% lags our original 33%E on lower hotel/ticketing volume and commissions. As competition continues heating up, the outlook appears more challenging for CTRP. The escalating market share rivalry requires continued heavy investment, including aggressive coupons/rebates, more on-the-ground sales/branding efforts and accelerated business development spending. We lower our DCF-based PT to $58 from $75 and anticipate the stock to remain range-bound, near term."

The firm is lowering 4QE net rev to $310M from $317M based on guidance and cutting non-GAAP EPADS from $0.28 to ($0.22). 2015E top-line/non-GAAP EPS goes from $1,577M/$1.80 to $1,541M/$0.54.

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 $58.46 yesterday.

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