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.
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