Brean Murray Carret & Co. Maintains a 'Buy' on eLong (LONG); Good Q2 on Robust Hotel Growth
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Price: $18.00 --0%
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Brean Murray Carret & Co. maintains a 'Buy' on eLong (NASDAQ: LONG) price target of $16. (from $17.00)
Brean analyst said, "LONG delivered strong 2Q results with continued robust hotel growth (hotel revenue up 47% YoY; volume up 65%YoY). As a result, LONG’s total hotel room nights booked in 2Q12 accounted for 54% of that of Ctrip.com (Nasdaq: CTRP)(Hold). However, we have seen aggressive promotions adopted industry-wide since July, which should dampen growth in 3Q for all key players. As such, LONG guided down its revenue growth in 3Q to 10%-20% YoY. Furthermore, as coupons become a more expansive channel for transactions and customer acquisitions, we expect the company to further explore new options."
Brean analyst expects LONG to adapt its coupon strategy vs. competitors and the market and therefore have room to continue to grow. FY12 EPS estimate lowered from $0.37 to $0.33 and FY13 from $0.60 to $0.48.
For an analyst ratings summary and ratings history on eLong click here. For more ratings news on eLong click here.
Shares of eLong closed at $14.31 yesterday.
Brean analyst said, "LONG delivered strong 2Q results with continued robust hotel growth (hotel revenue up 47% YoY; volume up 65%YoY). As a result, LONG’s total hotel room nights booked in 2Q12 accounted for 54% of that of Ctrip.com (Nasdaq: CTRP)(Hold). However, we have seen aggressive promotions adopted industry-wide since July, which should dampen growth in 3Q for all key players. As such, LONG guided down its revenue growth in 3Q to 10%-20% YoY. Furthermore, as coupons become a more expansive channel for transactions and customer acquisitions, we expect the company to further explore new options."
Brean analyst expects LONG to adapt its coupon strategy vs. competitors and the market and therefore have room to continue to grow. FY12 EPS estimate lowered from $0.37 to $0.33 and FY13 from $0.60 to $0.48.
For an analyst ratings summary and ratings history on eLong click here. For more ratings news on eLong click here.
Shares of eLong closed at $14.31 yesterday.
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