Jaffray maintain Ctrip Neutral rating target price up to 40 USD

Sina Science and technology news Beijing time of August 1, the United States investment Bank Jaffray (PiperJaffray) today issued an investment report to maintain the "neutral" rating of Ctrip (NASDAQ:CTRP), the target price from 33 U.S. dollars to 40 U.S. dollars.

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

Ctrip's second-quarter results exceeded Wall Street expectations and gave a strong third-quarter performance forecast. Ctrip expects the third-quarter revenue to grow 20% to 25% year-on-year, above our expected 18%, and 15% to 20% general levels. In the second quarter, operating margins were 24.7%, up from 23.4% in the first quarter and our expected 24%. We continue to maintain the "neutral" rating of Ctrip, which will increase the target share price from 33 US dollars to 40 dollars.

Second-quarter results: Revenue was 203 million dollars, up from Wall Street's expected $190 million trillion. Diluted earnings per share of $0.24 trillion, above Wall Street's expected $0.17 trillion. Ctrip expects revenue from the third quarter to grow 20% to 25% year-on-year, up from the 18% we expected.

Third-quarter operating margin stability: We expect Ctrip's third-quarter operating margin to be flat with the second quarter, and the entire 2013 fiscal year is expected to be 24.5%. Ctrip expects operating margins in the third quarter to be equivalent to about 25% in the second quarter, based on non-US general accounting standards.

Valuation: We continue to maintain the "neutral" rating of Ctrip, which will increase the target share price from 33 US dollars to 40 dollars. (Li Ming)