UPDATE: Brean Murray Carret Upgrades Ctrip.com International to Hold; Stabilizing Margins
Brean Murray Carret raises its rating on Ctrip.com International (NASDAQ: CTRP) from Sell to Hold and suspends its price target of $19 on shares.
Brean Murray Carret comments, "We upgrade CTRP shares from Sell to Hold, as the stock has reached our previous target price with the recent sell‐off. On the fundamental side, we have become incrementally more positive, as 1Q results + 2Q guidance seem to indicate that CTRP is stabilizing at a new revenue growth run rate of 15%‐20% with ~30% non GAAP operating margin, the base scenario the market has been looking for, in our view. With management reiterating its stable margin outlook in 2012 (vs. two consecutive cuts from the two previous quarters), we expect improving sentiment from the market and investor comfort of reinvesting in the stock."
CTRP closed at $19.65 on Wednesday.
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