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UPDATE: Aegis Downgrades On Limited Upside Potential

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In a note issued Friday morning, Aegis Capital downgraded (NASDAQ: CTRP) due to competitive risk along with declining profitability.

Aegis Capital mentioned that is in a heavy investment phase:

“Ctrip has adopted the strategy of investing heavily in product development and marketing so as to grab as much market share as possible. Ctrip has also made strategic investments to turn competitors focusing on specific travel segments into collaborators, such as the investment in Tongcheng ( and and the investment in Tuniu."

Aegis Capital also mentioned that will remain a viable company in the Chinese booking space, but lowered its rating from Buy to Hold due to limited upside:

“Our comparable universe analysis currently yields a $9.8 billion enterprise value for Ctrip, which translates into $66.00 per ADS. We believe the current share price reflects the intrinsic potential and risk of the firm and approximates a fair valuation.” traded recently at $61.89, down 3.3 percent.

Latest Ratings for CTRP

Apr 2015Summit ResearchInitiates Coverage onHold
Apr 2015Piper JaffrayUpgradesNeutralOutperform
Mar 2015Brean CapitalMaintainsBuy

View More Analyst Ratings for CTRP
View the Latest Analyst Ratings

Posted-In: Aegis CapitalAnalyst Color Downgrades Price Target Analyst Ratings


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