January 2016

[admin]

Here is something to ponder for the weekend:

Ctrip.com (NASDAQ:CTRP) is set to dominate China's online travel market, according to a Nomura research report Friday in which the investment bank initiated coverage of Ctrip stock with a buy rating and price target of 50. With its majority stake in Qunar (NASDAQ:QUNR) — Nomura analyst Jialong Shi estimates that the stake is 70% to 80% — and its controlling interest in eLong (NASDAQ:LONG), another Chinese travel site, Ctrip and the companies that it governs controlled 76% of China's gross travel volume in Q3 2015, says Shi... China's online travel market continues to grow as its expanding middle class travels in greater numbers. Ctrip is in position to capitalize on the migration from offline to online travel, says the analyst. Shi says that China's online travel sector has "significant untapped potential," with a penetration of just 7.5%, in contrast to 40% in more developed markets.

Ctrip.com To Dominate China Online Travel: Analyst CTRP QUNR BIDU - Investors.com

Last but not least, Nomura chose to initiate coverage of travel website Ctrip.com on Friday, assigning the stock a buy rating and a $50 price target. According to Nomura, Ctrip is "the best proxy to the potential boom in China's online travel agency (OTA) market over the next decade." And Nomura thinks this is a market that will grow 28% annually from now through 2020. Ctrip's market share here is "dominant," says Nomura. And while its stock is richly valued at 42 times earnings, most analysts who follow the company project earnings growth in the 47% range over the next five years. This suggests Ctrip's strength in online travel will only grow over time, and indeed, grow faster than the fast-growing market it dominates.

This Just In: Baidu Down, JD.com Up, and Why Nomura Loves Ctrip.com -- The Motley Fool