Reasons Why We Upgraded Ctrip’s Stock Price By Almost 20%

We recently upgraded our Ctrip’s stock price estimate by around 18% to $47 post its Q2 2016 earnings release. Ctrip’s dominance in China, its aggressive expansion in the lower priced and mid budget hotel room segments by funding them with higher priced hotel room profit margins, its focus on outbound travelers and expanding international travel offerings, and each of its segment’s healthy revenue growth — all of these factors contributed to our upward price revision.

Though Ctrip’s bottom line is currently dampened because of investments in its acquired entities,  the company is growing strong and promises an even better future for itself. Also, we have extended our forecast period for Ctrip from 2022 to 2023, that, too,  had an impact on its revised price estimate.

We’ve revised some of the important parameters in the Ctrip model and that, in turn, has resulted in the upgradation of our stock price estimate for company.

Have more questions about Ctrip? See the links below.

• What Is Ctrip’s Revenue And EBITDA Breakdown?
• How Has Ctrip’s Revenue And EBITDA Composition Changed Over 2012-2016E?
• Ctrip Q4 2015 Pre-Earnings Report
• What Drove Ctrip’s Revenue Growth And Led To Its EBITDA Decline Over The Last Five Years?
• Ctrip: Year 2015 In Review
• Ctrip Q1 2016 Earnings Preview
• Where Can Ctrip’s Growth Come From In The Next 5 Years?
• Which Two Segments Are The Biggest Contributors To Ctrip’s Growth?
• How Fast Is Ctrip’s Hotel Revenue Growing?
• How Can Ctrip’s Expansion In Geographies Like The U.S. Impact Its Share Price?
• How Did The Brexit Decision Impact Ctrip So Far?
• Ctrip Q2 2016 Earnings Preview
• Ctrip Continues Growing Though Its Bottom Line Remained Dampened Due To Investments
• What Drove Ctrip’s Packaged Tour Business In Q2 2016?

Notes:

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology