Oppenheimer Maintains Their Buy Rating on Ctripcom

By Ryan Adsit

Oppenheimer analyst Jed Kelly maintained a Buy rating on Ctripcom (NASDAQ: CTRP) today and set a price target of $62. The company’s shares closed yesterday at $52.72.

Kelly wrote:

“We are maintaining our $62 PT after CTRP reported a solid quarter, with adjusted EBIT 22% above the Street on improving customer service efficiencies. Lower-tier city expansion remains a critical focus with second-tier traffic growing 50% and likely causing marketing deleverage from lower unit revenue. Cross-selling Value Added Services (VAS) regulation ( Note Here) is likely to be most impactful in 4Q, then alleviating as company makes appropriate site adjustments. We expect VAS to limit near-term visibility, thus we reduce our 4Q net revenue by 2%. Despite tougher cross-selling regulations, management maintained its original 2020 growth targets, indicating to us the company’s significant supply-scale advantages. We believe CTRP’s strong competitive position will continue to create sustainable share gains and drive margin expansion.”

According to TipRanks.com, Kelly is a 5-star analyst with an average return of 21.2% and a 69.1% success rate. Kelly covers the Services sector, focusing on stocks such as Yatra Online Inc, TripAdvisor Inc, and Bankrate Inc.

Currently, the analyst consensus on Ctripcom is Strong Buy and the average price target is $59.33, representing a 12.5% upside.

In a report issued on August 28, Cowen & Co. also maintained a Buy rating on the stock with a $53 price target.

Based on Ctripcom’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $885 million and quarterly net profit of $11.98 million. In comparison, last year the company earned revenue of $671 million and had a GAAP net loss of $79.33 million.

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Ctrip.com International Ltd. engages in the provision of travel-related services. It provides hotel accommodations, airline tickets, packaged tours, corporate travel management services, property management systems, and advertising services.