Goldman Sachs Raises Price Target On Ctrip To $42 (CTRP)

Goldman Sachs is upping its price target to $42 from $40 and keeping its Neutral rating on shares of Ctrip.com International

after the online travel company reported earnings that were above estimates. In the report Goldman Sachs notes, "Ctrip reported 2Q10 revenue/non-GAAP EPS in line/9% above our estimates on effective cost control. Hotel volume grew 34% yoy, with commission per room night up 5% yoy. Air ticket volume rose 22% yoy, vs. China’s air ticket industry volume growth of 15%-20%, with commission up 17% yoy. Mgmt attributed Ctrip’s weak air ticket volume to institutional group tours for Shanghai World Expo, which benefited the airline industry but not Ctrip. Excluding the World Expo impact, we estimate Ctrip’s air ticket volume may have grown c. 2X as fast as the industry in 2Q10, though lower than its previous 3-4X rate, due to the strong industry recovery and higher base." Shares of Ctrip.com closed down $1.42 to $41.10.