UPDATE: Stifel Initiates Coverage on Qunar Cayman Islands on Fair Valuation

In a report published Tuesday, Stifel analyst George Askew initiated coverage on

with a Hold rating. In the report, Stifel noted, “We are initiating coverage of Qunar Cayman Islands Limited (QUNR) with a Hold rating on the shares. Since Qunar's initial public offering at $15.00 at the end of October 2013, the shares have risen 64.7% compared to a 2.3% increase in the S&P500 Index. Based on the current share price of $24.70, the company's enterprise value to adjusted EBITDA multiple is 13.9x our 2016 estimated adjusted EBITDA of $200.4 million, a fair valuation we believe. We have significant respect for the company's management, business model, and franchise. We look forward to becoming more constructive on the shares at a more compelling valuation.” Qunar Cayman Islands closed on Monday at $24.70.