Market Overview

Ctrip.com Destroyed on Downgrade; Stock Down 9%

Shares of Chinese ADR Ctrip.com (NASDAQ: CTRP) are getting hit very hard on Monday after analysts at Mirae Asset downgraded the stock from Buy to Hold and lowered their price target from $28.00 to $21.00. The analysts wrote that "During our recent trip to China China, we found that Qunar's decision to place wholesalers' hotel inventory online might pose a serious threat to CTRP's hotel commission. Most of these wholesalers function on a merchant model, buying hotel inventories at 4-5 star hotels at lowest prices for tourist groups. Leakage of wholesale hotel inventory to retail was a thing of the past and was easy to monitor because volume, mostly offline, was small and scattered. A weak economy, however, has prompted travel wholesalers to place a larger inventory online through Qunar and Taobao Travel. The volume is too big for CTRP to monitor, in our view."

At last check, CTRP shares had lost 9% and were trading at $17.00. Volume has been heavier than usual with more than 2.3 million CTRP shares already trading hands on the session. Year-to-date, CTRP shares have lost roughly 27%.

Ctrip.com International, Ltd. (Ctrip) is a travel service provider for hotel accommodations, airline tickets and packaged tours in China. Ctrip aggregates information on hotels and flights and enables its customers to make hotel and flight bookings.

Posted-In: Analyst Color Downgrades Price Target Intraday Update Analyst Ratings Movers

 

Related Articles (CTRP)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters