Ahead of the Bell: Ctrip.com rises after 3Q report - News Wires

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Ahead of the Bell: Ctrip.com rises after 3Q report

By: The Associated Press | 12 Nov 2009 | 08:55 AM ET

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NEW YORK - American depositary shares of Ctrip.com International Ltd. rose sharply in premarket trading Thursday after the Chinese travel service company reported demand for hotels and airline tickets boosted its third-quarter profit.

U.S.-listed shares of the company, which specializes in discount hotel reservations and cheap airline tickets, jumped $6.71, or 10.4 percent, to $71 ahead of market open. The stock appeared poised to set a new 52-week high, beating a peak of $66.83 set Wednesday.

On Wednesday, Ctrip.com said higher revenue from hotel and flight reservations lifted third-quarter profit 80 percent.

Hotel reservations rose 41 percent and flight bookings rose 45 percent, Ctrip.com said.

Kaufman Bros. analyst Aaron Kessler on Thursday hiked his price target to $83 from $63. That implies shares have room to rise 29.1 percent from Wednesday's close of $64.29.

Kessler said the company is benefiting from a recovery in China travel as it continues to gain market share.

Ctrip.com forecast fourth-quarter revenue will rise by 25 percent to 30 percent. Kessler, who rates the stock "Buy," called the estimate conservative.

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