NEW YORK (TheStreet) -- Shares of Ctrip.com International Ltd. (CTRP) are lower by -2.98% to $57.32 in early trading Tuesday morning following a ratings downgrade to "hold" from "buy" at Stifel Financial Corp. (SF).
The firm said it dropped its rating on the travel service provider based on the company's announcement it is reducing ticketing commission rates to 2% from 3% for domestic flights booked by travel agents.
Stifel is expecting more airlines to make this change as well and lowered its rating to express expectations of lower base commissions.
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Separately, TheStreet Ratings team rates CTRIP.COM INTL LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CTRIP.COM INTL LTD (CTRP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share."