Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) announced that The Priceline Group Inc. (NASDAQ:PCLN) and a long-term equity investment firm have each agreed to invest $500 million in Ctrip via convertible bonds. Ctrip has extended its permission to The Priceline Group to increase its ownership in Ctrip through the acquisition of Ctrip’s American depositary shares in the open market so that, when combined with the shares issuable upon conversion of the $250 million convertible bond and the $500 million convertible bond issued to The Priceline Group in May 2015 and August 2014, respectively, The Priceline Group may hold up to 15% of Ctrip’s outstanding shares.
This investment by The Priceline Group follows a commercial relationship established between Ctrip and The Priceline Group in 2012, which was expanded in August 2014 and further in May 2015. Ctrip and The Priceline Group will continue their existing commercial partnership, whereby accommodations inventory is cross-promoted between the brands.
“Today’s announcement has further strengthened the strong partnership between Ctrip and the Priceline Group. To work closely with a leading global online travel company is an integral part of our long term growth plan,” said James Liang, Co-founder, Chairman, and CEO of Ctrip. ” We expect the relationship to continue to bear fruit for many years to come.” (Original Source)
Shares of Ctrip are up 5.64% to $53.58 in pre-market trading. CTRP has a 1-year high of $57.36 and a 1-year low of $20.37. The stock’s 50-day moving average is $49.07 and its 200-day moving average is $38.92.
On the ratings front, Ctrip has been the subject of a number of recent research reports. In a report issued on November 19, Stifel Nicolaus analyst George Askew reiterated a Buy rating on CTRP, with a price target of $62.50, which represents a potential upside of 23.2% from where the stock is currently trading. Separately, on the same day, Piper Jaffray’s Michael Olson reiterated a Buy rating on the stock and has a price target of $62.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, George Askew and Michael Olson have a total average return of 21.4% and 7.5% respectively. Askew has a success rate of 54.0% and is ranked #187 out of 3637 analysts, while Olson has a success rate of 51.9% and is ranked #370.
The street is mostly Bullish on CTRP stock. Out of 7 analysts who cover the stock, 7 suggest a Buy rating . The 12-month average price target assigned to the stock is $56.42, which represents a potential upside of 11.2% from where the stock is currently trading.
Ctrip.com International Ltd provides travel related services including hotel reservation, air-ticketing, packaged-tour services, as well as, to a much lesser extent, Internet-related advertising and other related services.