Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) price target has been lifted by research analyst Fawne Jiang at the New York-based investment banking Brean Capital. The new price target now stands at $96.00 (from $70.00), representing an upside of 35% over the closing stock price. The analyst also maintained a Buy rating on the stock, following the company’s strong first-quarter financial results, posting revenue of RMB 2,315mm, exceeding consensus expectation of RMB 2,252mm. Non-GAAP EPS was $0.04, exceeding the consensus expectation of $-0.08 by 12 cents.
Jiang observed, “We view CTRP as a core holding in the China Internet space and see the company offering investors a unique investment exposure to China’s robust online travel growth. Fundamentally, with multi-year investment and its continued technology improvements and product/service expansions, CTRP has built a one-stop shop for travelers in China with a strong value proposition. Furthermore, the company has increasingly built out its operating platforms by continuing to aggregate volume and consolidate market share.”
“Financially, with increasing growth momentum/return from early investment, we see substantial operating leverage to unlock, as evidenced by the improving margin trend and management expectation on nearterm profitability of its baby tiger programs. We see a clear road map for CTRP in which the company is going through a virtual cycle of investing in future growth followed by its strong execution. In our view, CTRP offers an attractive risk/reward profile for investors.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Fawne Jiang has a total average return of 1.9% and a 45.7% success rate. Jiang has a 18.4% average return when recommending CTRP, and is ranked #1745 out of 3602 analysts.