Oppenheimer Thinks Ctripcom’s Stock is Going to Recover

In a report released today, Jed Kelly from Oppenheimer assigned a Buy rating to Ctripcom (NASDAQ: CTRP), with a price target of $51. The company’s shares closed yesterday at $42.80, close to its 52-week low of $40.13.

Kelly said:

“Next week’s 1Q:18 print (5/22 ATC) will provide better visibility into value-added services (VAS) cross-selling regulation headwinds, and 2Q:18 net revenue guidance in 15%-20% range (Opco/Street at +14%E y/y) represents a strong indicator that CTRP is effectively managing near-term VAS difficulties, in our view. We believe VAS regulation impacts all travel suppliers, and CTRP is best positioned to eventually emerge with greater market share; we would be LT buyers on weakness. Accommodation revenue is other key metric, and guiding 2Q decelerating from 1Q will support some Meituan/BABA competition concerns; however, we believe CTRP’s 14.9K customer service employees and supply scale provide a strong moat to combat emerging players. $51 price target.”

According to, Kelly is a 4-star analyst with an average return of 6.6% and a 55.6% success rate. Kelly covers the Services sector, focusing on stocks such as Booking Holdings Inc, TripAdvisor Inc, and Expedia.

Ctripcom has an analyst consensus of Moderate Buy, with a price target consensus of $49.20.

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Based on Ctripcom’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $76.14 million. In comparison, last year the company had a net profit of $11.97 million.

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