Shares of U.S.-traded travel and leisure companies based in Asia fell on Wednesday after an analyst downgraded Ctrip.com International Ltd., saying the Web-based travel booking service is no longer underpriced.
Piper Jaffray analyst Aaron M. Kessler lowered Ctrip to "Neutral" from "Buy," noting shares of the Beijing-based company have gained 39 percent since Jan. 24 and are closing in on his $69 price target.
"While we remain positive on Ctrip's fundamentals and believe the company will continue to benefit from the strong travel market in China, we believe at the current valuation," the stock is less appealing, he said.
ADRs of Ctrip. lost $2.70, or 4 percent, to $64.12. ADRs, or American Depositary Receipts, are securities that allow overseas companies to trade on U.S. markets.
The broader Asian travel and leisure ADR sector retreated Wednesday. Chinese discount hotel operator Home Inns & Hotel Management Inc. lost $1.38, or 5.3 percent, to $24.62.
China's Guangshen Railway Co. shed $2, or 6.8 percent, to $27.44.
Chinese Travel services provider Elong Inc. fell 25 cents, or 2.5 percent, to $9.62.
Melco Pbl Entertainment Ltd., which operates casinos in Macau, dropped 8 cents to $14.39.
Meanwhile, the broader ADR market lost ground. The Bank of New York Asia ADR Index fell 4.59 points, or 2.7 percent, to 163.90.
The Bank of New York Composite ADR Index gave up 3.86 points, or 2.1 percent, to 182.58.
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