UPDATE: Morgan Stanley Upgrades Ctrip.com International Ltd. to Overweight, Lowers PT as Near-Term Volatility Offers Buying Opportunity

In a report published Thursday, Morgan Stanley analyst Philip Wan upgraded the rating on

from Equal-Weight to Overweight, but lowered the price target from $55.00 to $50.50. In the report, Morgan Stanley noted, “Ctrip's share price has dropped ~30% since its 3Q result (Nov 6 2013), vs. up ~7% for the NASDAQ, largely due to concerns about tougher competition and near-term margin pressure. While we expect margins to decline in 2014, we think the strategy to strengthen Ctrip's market position and capture the business opportunities in mobile and leisure travel services makes sense.” Ctrip.com International Ltd. closed on Wednesday at $41.72.