Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Deutsche Thinks Ctrip Has Plenty of Room to Fly

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of International (NASDAQ: CTRP  ) closed yesterday up 8% after Deutsche Bank upgraded the stock to "buy" from "hold."

So what: Along with the upgrade, analyst Vivian Hao boosted her price target on the stock to $65 per share (from $35.20), representing about 17% worth of upside to where it sits now. Hao cited strong booking volumes -- particularly hotel sales made via mobile devices -- for the upbeat view, suggesting that the company can continue to keep its breakneck growth rate up.

Now what: Don't expect the operating momentum to slow anytime soon. "We believe CTRP is rapidly emerging as a clear travel solution leader in mobile, aided by founder James Liang's return," wrote Hao in a note to clients. "As such, despite intensifying competition, we expect Ctrip revenue/earnings growth to reaccelerate instead of decelerating as the market expects." Of course, with the stock now up a whopping 225% over the past year and trading at a forward P/E of 45, Ctrip doesn't exactly have a wide margin of safety built into it, either. 

More compelling tech stocks
The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to rule the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate, and we'll give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2656000, ~/Articles/ArticleHandler.aspx, 9/26/2016 10:12:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,122.60 -138.85 -0.76%
S&P 500 2,149.97 -14.72 -0.68%
NASD 5,267.08 -38.67 -0.73%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 9:56 AM
CTRP $45.73 Down -0.29 -0.63% Internat… CAPS Rating: ***