Bank of America Maintains Neutral on Ctrip.Com (CTRP)

Bank of America maintained its Neutral rating on Ctrip.Com CTRP. In a research report published today, Bank of America praised Ctrip for its performance. At the same time, it expressed fears that the industry sentiment might catch up with Ctrip. In the report, Bank of America states, "Ctrip continues to execute well to meet market expectations amid the high base effect due to last year's economic uptake and the Expo. However, industry forces are too powerful to neglect. Excluding contribution from the acquisitions of EzTravel and WingOn, growth of both air and hotel declined to mid-20%. We expect a gradual rebound in travelers to offset the fading acquisition effect in the coming two quarters until a normal base for growth returns in 4Q11, from which we expect Ctrip to grow at roughly twice the rate of the air industry." At the moment, Bank of America has a price target of $50.50 on Ctrip. On Monday, Ctrip lost 2.44% of its value to close the day at $46.36. Its losses continued in today's pre-market session as well, as its shared went down by additional 2.5% and are currently standing at $45.20.