According to Reuters, out of the seven analysts tracking Qunar Cayman Islands (QUNR), 14% gave a “buy” recommendation on the stock. 57% gave a “hold” rating, and 29% gave a “sell” rating.
However, many analysts have stopped covering Qunar Cayman Islands. A year ago, almost 15 analysts covered the stock, but this number has fallen 50%. This is because Qunar plans to go private in the first half of 2017. We’ll discuss this in detail later in the series. Of the remaining analysts, most have maintained their rating for QUNR.
It’s important to be aware of analyst recommendations or changes to recommendations, as they can significantly affect the company’s stock price. Changes to a popular analyst’s view can cause a significant short-term movement in the stock price.
Qunar’s consensus-12-month target price is $34.98, which indicates a 16.8% return potential. The highest target price given by analysts is $44.86 and the lowest target price is $28.91.
For 2016, analysts estimate Qunar’s sales will grow 9% to ~$6.9 billion compared to a 131% growth in 2015. 2016 EBITDA is expected to remain negative at -$264 million as compared to -$279 million in 2015.
We’ve discussed quarterly earnings results for Qunar’s competitors Ctrip (CTRP), Priceline (PCLN), TripAdvisor (TRIP), and Expedia (EXPE). Check out these series for a better understanding of the OTA (online travel agency) industry.
Investors can gain exposure to the Chinese OTA market by investing in the KraneShares CSI China Internet ETF (KWEB).
Continue to the next part for a look at Qunar’s revenue growth prospects going forward.