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Brean Murray Carret & Co. Downgrades Ctrip.com (CTRP) to Sell; Margin Contraction to Mute Earnings Growth

February 21, 2012 7:08 AM EST Send to a Friend
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Price: $67.40 +5.03%

Rating Summary:
    12 Buy, 5 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 13 | New: 52
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Brean Murray Carret & Co. downgraded Ctrip.com (NASDAQ: CTRP) to Sell with a price target of $19.00.

Brean analyst says, "While CTRP reported largely in-line 4Q results and largely in-line 1Q revenue guidance, we continue to see mounting pressure on its margin outlook in the coming quarter and in FY2012. What concerns us most is the structural change that the company is going through; we believe factors that are pressing its margins are unlikely to go away anytime soon (labor cost pressure, profit giving-back to attract leisure segment and increasing investment upon competition). We expect the company’s earnings growth will be muted in 2012 with limited upside over the next 12 months. Earnings growth thereafter will likely remain challenging."

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 $24.69 yesterday.




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