Piper Jaffray is Bullish Following Strong Q1 by Ctrip.com (CTRP)
Piper Jaffray maintains an Overweight rating on Ctrip.com (NASDAQ: CTRP), and raised the price target to $91.00 (from $90.00), after a strong Q1. Despite A "hyper-competitive market", Ctrip reported net revenue of $373.4M, beating the consensus at $360.9M. Management guided for Q2 net revenue growth (in RMB) of 45-50% y/y (Compared to prior guidance of 40-50%).
Piper Jaffray analyst, Michael Olson, commented on CTRP, saying, "Ctrip reported strong Q1 revenue and EPS ahead of the Street and with profitability returning quicker than we had anticipated. The company tightened the Q2 revenue growth guidance range upwards to 45-50% from 40-50% previously and, importantly, Q2 PF op margin outlook is calling for approximately 8%, above the Street at 4.8% and previous qualitative guidance calling for "profitability." Beyond Q2, the company had previously suggested that 2015 PF op margin will be flattish y/y with 2014 (low to mid single digits). We believe the company intends to return to a 20%-30% PF op margin long-term (~3 yrs), accompanied by multi-year revenue growth of >30%. Ctrip has a leading position in a massive secular growth market and we expect that margin pressure will continue to ease, which should drive CTRP shares higher. Reit OW; PT to $91 (was $90)."
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 $65.36 yesterday.