PiperJaffray down Ctrip rating to Neutral

Sina Science and technology news in Beijing October 18 night, the United States investment Bank Jaffray (PiperJaffray) released an investment report today, will carry Ctrip (NASDAQ:CTRP) stock rating from "overweight" down to "neutral", the target price from 41 U.S. dollars to 36 U.S. dollars. The following is a summary of the report: Ctrip will earn most of its share in the growing Chinese tourism market, whether online or offline. Over the next 1-2 years, Chengying receipts and diluted earnings per share will rise to at least 20% to 25%.　　But because of the limited space of profit margin, macroeconomic uncertainty, and market competition, we believe that Ctrip will not have a big growth trend in the short term. Margin growth space is limited: We expect the Ctrip 2012 revenue increase will accelerate again, because the profit margin has returned to 40% to 42% of the normal level, we do not expect to have a significant increase in the profitability of Ctrip. We expect Ctrip to spend more in the next 1-2 quarters. In addition, in the low-end consumer online travel booking market, Ctrip faces the competition will intensify.　　Because of the limited space for profit margin growth, macroeconomic uncertainty, and market competition is increasingly encouraging, we believe that Ctrip will not be a significant growth in the short term. Revenue gains are basically in line with expectations: China's three biggest airlines ' third-quarter airline passenger numbers rose 4% year-on-year, compared with a year-on-year gain of 8% per cent in the second quarter. We expect the third-quarter revenues to increase not to a large extent than the company previously expected 15% to 20%.　　Wall Street believes that Ctrip's third-quarter revenue will rise to 19%. The quarter was upbeat: based on data on aviation and hotels, we expect the third-quarter revenue to reach the expected highs.　　In the quarter, Ctrip expects revenue growth to reach 15% to 20%, with industry analysts averaging 22%, and we expect to rise above the third quarter.　　There is limited room for growth in earnings per share: As spending increases, Ctrip has limited room to grow in profitability and diluted earnings per share over the next few quarters. Stock Rating: We will move Ctrip stock rating from "overweight" to "neutral", the target share price from 41 U.S. dollars to 36 U.S. dollars. (Li Ming) share to:>> more