Companies in the Services sector have received a lot of coverage today as analysts weigh in on Pra Group (NASDAQ: PRAA) and Ctripcom (NASDAQ: CTRP).
Pra Group (NASDAQ: PRAA)
Oppenheimer analyst Ben Chittenden maintained a Hold rating on Pra Group (NASDAQ: PRAA) today. The company’s shares closed yesterday at $39.95, close to its 52-week high of $40.55.
Chittenden noted:
“We recently had the opportunity to travel with CEO of IR Darby Schoenfeld in meetings with clients. We walked away more convinced that many of the headwinds PRAA has faced over the past couple of years are behind them. Our main takeaways are: 1) renewed focus on reducing employee attrition coupled with average employee tenure improvements should lead to sustainable productivity gains; 2) PRA’s continued investment in being an industry leader in compliance adds to their moat; 3) the US market should continue to see growth in supply; and 4) European buying will remain episodic. We continue to think that long- term investors can own PRAA and the only thing that keeps us on the sidelines shorter term is valuation.”
According to TipRanks.com, Chittenden is a 3-star analyst with an average return of 1.3% and a 55.4% success rate. Chittenden covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp, and Capital One Financial.
Pra Group has an analyst consensus of Hold.
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Ctripcom (NASDAQ: CTRP)
In a report released today, Jed Kelly from Oppenheimer reiterated a Buy rating on Ctripcom (NASDAQ: CTRP), with a price target of $54. The company’s shares closed yesterday at $46.59.
Kelly observed:
“We hosted a well-attended investor meeting with Investor Relations. The tone of the meeting was positive, and we came away with better visibility into the stock’s critical factors including: 1) impact of cross-selling unbundling; 2) cadence in reaching 20%-plus margin goal; 3) competition; 4) accommodation trends and 5) global expansion targets. Two incremental takeaways were: 1) stricter regulation on cross-selling services appears to be accelerating CTRP’s domestic share gains; and 2) global expansion is creating a dynamic of balancing investment vs. margin expansion, potentially pushing the company’s adjusted EBIT margin goal of 20%-plus to 2020. We remain bullish on CTRP’s leading travel supply/booking solutions driving long-term share gains; maintain Outperform, $54 PT.”
According to TipRanks.com, Kelly is a 4-star analyst with an average return of 8.2% and a 61.0% success rate. Kelly covers the Services sector, focusing on stocks such as Booking Holdings Inc, TripAdvisor Inc, and Expedia.
Currently, the analyst consensus on Ctripcom is Moderate Buy and the average price target is $50.33, representing an 8.0% upside.
In a report issued on May 23, Barclays also maintained a Buy rating on the stock with a $54 price target.
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