Ctrip's neutral rating, set the target price at $44

J.P. Morgan released its investment report today, giving Ctrip a "neutral" rating of NASDAQ:CTRP, which set its target price at $44 trillion.

The following is a summary of the contents of the report:

Since the end of last year, the price war on coupons in China's online travel market has eased. We believe that in the next few years Ctrip will continue to improve profitability, mainly due to: 1 more moderate competitive environment, 2 of the new projects are hatching more profitability, 3 mobile users to obtain higher cost return.

Structural growth opportunities in China's online tourism market: This is mainly due to lower online travel penetration (22%), and we believe that leisure tourism will lead the market growth in the next 3 to 5 years.

Expansion of the scale to enhance the bargaining power: we believe that Ctrip's coupon promotions not only rebalance the online tourism market, but also promote the growth of the hotel bookings Ctrip. As a result of the volume expansion, Ctrip's bargaining power also resulted in promotion.

Valuation: We give Ctrip a "neutral" rating and set the target price at $44.