UBS Group released a report stating that Ctrip (TCOM.US) (09961.HK) will announce its second-quarter business performance and continue to expand its overseas business, which is a potential catalyst for the stock price. UBS raised the target price for Ctrip's H shares from 531 yuan to 546 yuan, and the target price for American depositary shares was raised from $68 to $70, with an investment rating of "buy."

The bank believes that the Asian tourism market outside China is huge and believes that investors overlook the potential for Ctrip's overseas business. Its international online brand, Trip.com, already accounts for 10% of the company's overall revenue. Based on market analysis and financial estimates, the bank expects the company's annual compound growth rate of revenue from 2023 to 2028 to reach 50%, based on the company's product, pricing, and service advantages. Its analysis also believes that the company's international business has limited impact on its profits, based on operational efficiency improvements and promoting the bank's earnings forecast higher than market consensus.

The bank also reiterated that Ctrip is the preferred stock in the industry.