UPDATE: Goldman Sachs Maintains Sell on Ctrip.com; Lowers PT from $17 to $15.50
Goldman Sachs reiterated a Sell rating on Ctrip.com (NASDAQ: CTRP) and lowered its price target from $17.00 to $15.50.
Goldman Sachs commented, “We view this quarter's results as evidencing Ctrip's ongoing adaption to a more price-sensitive travel booking landscape occupied by more leisure and online travelers, a structural trend we expect to persist beyond 2012E affecting both gross margins and opex (esp. S&M). We believe the focus has shifted to 2013E margin trends, and without signs of strong travel demand rebound and moderating price competition, we remain cautious on margin trends and thus remain Sell rated.”
Ctrip.com closed at $14.90 on Tuesday.
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