The U.S.-traded shares of Shanghai-based travel site Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) are breaking out today, up 6.6% this afternoon to trade at $64.76. In fact, CTRP tagged a fresh record peak of $65.20 earlier, joining 88 other securities hitting new annual highs on the Nasdaq today.
A bullish brokerage note appears to have sparked today's positive momentum. Overnight, Deutsche Bank raised its price target on CTRP to $74 from $58 and backed its "buy" rating on the shares. The new price target implies expected upside of nearly 22% from last Friday's close at $60.78 -- and it's well north of the stock's average 12-month price target of only $58.32.
Today's pop has pushed CTRP above short-term pressure in the $62 region, which had capped the equity's progress since mid-June. The breakout above this level means that $62 could eventually switch roles to act as support for the stock -- similar to the technical transformation that occurred in the $56 area earlier this year.
Going forward, a rush to cover by short sellers could help the shares of Ctrip.com International, Ltd. (ADR) firm up their newfound footing on the charts. Short interest accounts for 5.8% of the stock's float, and it would take 4.8 trading days -- nearly a week -- for all of these shorted shares to be repurchased. With CTRP surging higher, a capitulation by some of the weaker bearish hands could contribute to additional upside.
The One Overseas Market That's Trending Higher in 2014
Featured Partners: AOL DailyFinance
© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: firstname.lastname@example.org
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.