Reasons Behind Our 30% Upgrade Of Ctrip's Stock Price

Ctrip went into a share exchange agreement with Qunar's backer, Baidu, and purchased a ~40% stake in eLong. This is expected to mitigate the price wars in China to a great extent. The most notable players have entered into partnerships leading to significant consolidation of the online travel industry in China. However, Ctrip has started recovering its margins even prior to its alliance agreement with Baidu. We can only expect Ctrip's growth to be further boosted by its strategic partnerships bo...