UPDATE: Morgan Stanley Reiterates Overweight Rating, Removes PT on Ctrip.com International Ltd. as Investments Drive Faster Market Share Gain

In a report published Thursday, Morgan Stanley analyst Philip Wan reiterated an Overweight rating on

, but removed the $50.50 price target. In the report, Morgan Stanley noted, “Net revenues grew 36% YoY to Rmb1.49bn in 1Q, exceeding the high end of the company's guidance (up 25-30%) and 6% above our estimate. The operating margin contracted ~9ppts YoY to 4%, due to heavier investment, but was ~150bps better than our estimate. Diluted EPS was US$0.12 (down 33% YoY), beating our and the consensus estimate of ~US$0.11.” Ctrip.com International Ltd. closed on Wednesday at $45.67.