Why Ctrip.com (CTRP) Is Up Today

NEW YORK (TheStreet) -- Ctrip.com (CTRP) was rising 8.22% to $45.15 on Thursday after the Chinese travel agency reported fourth-quarter earnings that beat analysts' estimates.

Revenue for the quarter totaled $238 million, a 31% year-over-year increase. Diluted earnings per American Depositary Share were 39 cents, which beat the consensus estimate of 35 cents, according to Barron's. Net income was $43 million, a 36% year-over-year increase.

Despite the report, Oppenheimer lowered its target price on Ctrip because the company "guides 10% non-GAAP margin for 1Q14, a historical low, due to aggressive spending in brand campaign and product development, plus 15-20% hotel coupon costs (though stabilizing)," according to the firm's research note. It lowered its target price to $50 from $65 and reduced its earnings per share estimate given the Ctrip's margin outlook for 2014; however, Oppenheimer noted, "CTRP remains a major player in China's OTA market and we stay positive about its long-term growth prospects."

Must ReadTrade-Ideas: Ctrip.com International (CTRP) Is Today's "Storm The Castle" Stock

TheStreet Ratings team rates CTRIP.COM INTL LTD as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CTRIP.COM INTL LTD (CTRP) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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