Piper Jaffray Lowers PT On CTRP To $49

Piper Jaffray , citing a conservative outlook following a slight Q1 upside, is lowering its price target on Ctrip.com International (NASDAQ: CTRP) from $50 to $49 and is maintaining its Overweight rating on the stock.

In the report, Piper Jaffray writes, “Reported Q1 revenue growth of 30% y/y (in RMB) vs. consensus of 26%. Q1 EPS of $0.24 was $0.02 ahead of the Street at $0.22. Q2 revenue growth guidance is +15-20% y/y (in RMB), compares to our previous +30% growth estimate. Conservative guidance has become standard operating procedure for Ctrip and the company has exceeded the midpoint of the revenue guidance range by an average of ~1200 bps over the last 16 quarters. Some investors will be disappointed by the Q2 guidance, but we are confident Ctrip will be able to continue to grow revenue >25% y/y for the next two years. While competition is intensifying in online bookings, we believe Ctrip is best positioned among OTAs in China with ~50% online market share, giving it strong brand recognition and scale.”

CTRP closed yesterday at $46.36.