Oppenheimer Upgrades Ctrip.com (CTRP) to Outperform
Oppenheimer upgraded Ctrip.com (NASDAQ: CTRP) from Perform to Outperform with a price target of $80.00, noting secular growth pillars reaccelerate top-line and margins.
Analyst Ella Ji commented, "CTRP's growth pillars—mobile, open platform, yield mgmt., and outbound travel—continued to drive robust top-line growth in 1Q. Margins also outperformed, benefiting from operating leverage. The 47% top-line growth topped consensus of 42%E, and mobile contributed 70% of total transactions. Guidance for 2Q of 45-50% top-line growth and 6-10% non-GAAP operating margin both exceed our original ests. We raise our 2015-16E top line and EPS by 3%/6% and 36%/16%, respectively. We now expect top-line growth will reaccelerate to 45% in 2015 from 35% last year, and non-GAAP OM will also return to the high-single digits from 4.7% last year. Upgrade to Outperform from Perform on strong revenue momentum, with an $80 price target."
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Shares of Ctrip.com closed at $65.36 yesterday.