UPDATE: Barclays Capital Initiates Coverage on Ctrip.com

According to a research report released earlier today, Barclays Capital has initiated Ctrip.com (NASDAQ: CTRP) with an Underweight rating and $23 PT.

Barclays Capital said in the report, “While we believe current valuation is not too demanding and has reflected most of the negative news, we remain cautious on Ctrip near term, given: 1) the competitive landscape is becoming more complicated; 2) price wars and aggressive discounting are likely to intensify; and 3) its call centres, which until recently were its competitive advantage, are now more of a disadvantage, as labour costs soar and bookings move online. Until we see earnings re-accelerate and margins rebound, we remain cautious; hence initiate coverage of Ctrip with a 3-Underweight rating and 12-month price target of US$23, implying 3% potential downside.”

Ctrip.com closed yesterday at $23.37.