NEW YORK (TheStreet) -- Shares of Ctrip.com International (CTRP) closed trading up nearly 3% on heavy volume Friday despite being downgraded by analysts at Oppenheimer and TheStreet Ratings quantitative service.
Analysts at Oppenheimer reduced the company's price target to $55 from $60 while maintaining an "outperform" rating on the company.
The Shanghai-based travel service provider reported an adjusted EPS of 11 cents per share, beating analysts' estimates for a loss of 4 cents per share.
Revenue for the period soared 50% to 2.9 billion yuan ($444 million) year-over-year, above Wall Street's estimates of 2.8 billion yuan.
However, the company also provided weak first quarter guidance, saying they expect current quarter revenue to increase between 75% and 80%. Oppenheimer was expecting a larger increase.
"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.
Separately, TheStreet Ratings also lowered its rating on the company to "hold" from "buy" while also lowering its letter grade to C from B. "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," TheStreet said.
"The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good," TheStreet concluded.
TheStreet Ratings uses an algorithmic model to determine a rating for risk-adjusted total return prospect over 12 months.