UPDATE: Oppenheimer Reiterates Outperform Rating, Lowers PT on Ctrip.com
In a report published Wednesday, Oppenheimer Holdings reiterated its Outperform rating on Ctrip.com International (NASDAQ: CTRP) but lowered its price target from $30.00 to $25.00.
Oppenheimer noted, “CTRP reported better than expected 2Q results and provided 3Q revenue guidance that encompasses our and consensus estimates. While margins contracted year/year, they were roughly in line with our estimates. Competition in the Chinese OTA market appears to be intensifying. Management lowered its margin forecast again, suggesting more aggressive pricing and marketing efforts in 2H12. We are lowering EPS estimates to reflect lower margin assumptions while keeping revenue estimates largely unchanged (only adjusting for FX). We also have lowered our PT from $30 to $25 on lower estimates. While we remain bullish on long-term prospects of CTRP, the stock may remain range-bound near term, given unfavorable margin trends, heightened competition and macro uncertainty.”
Ctrip.com International closed on Tuesday at $14.90.
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