The lower price target comes after the Shanghai-based travel service provider posted better-than-expected 2015 fourth quarter results on Wednesday, but provided weak guidance for the first quarter.
For the current period, Ctrip.com expects revenue to increase 75% to 80%. This is 13% below Oppenheimer pro-forma estimates and 11% below Wall Street expectations, the firm said.
The softer guidance is due to the company's travel platform Qunar Cayman Islands (QUNR) losing air inventory service quality with major airlines and discontinuing its merchant hotel business in tier 1 and 2 cities, Oppenheimer noted.
"We view these items as short term, with limited disruption to consolidated CTRP's long-term fundamentals. We believe CTRP's customer service and technology stack can counter most airline aggressiveness. Management expects margins to expand for both entities," the firm said in an analyst note.
"CTRP remains a leading option for investors to participate in China's consumption economy transition, in our view," Oppenheimer added.
Shares of Ctrip.com are increasing by 0.45% to $42.50 in pre-market trading on Friday.
Separarely, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
This is driven by a few notable strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth, notable return on equity, expanding profit margins and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CTRP