Citi analyst Brian Gong maintained a Buy rating on Trip.com Group Sponsored ADR (TCOM – Research Report) today and set a price target of $78.00.
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Brian Gong has given his Buy rating due to a combination of factors surrounding Trip.com Group’s strategic financial maneuvers and market positioning. One significant aspect is the share repurchase agreement with MakeMyTrip (MMYT), where Trip.com plans to sell a portion of its stake. This transaction is expected to generate a one-time gain and enhance shareholder returns, as Trip.com remains the largest minority shareholder, ensuring continued cooperation.
Additionally, the deal is seen as a positive move given the current valuation of MMYT and the potential for increased shareholder returns due to more available offshore cash. Furthermore, concerns about JD’s expansion into the online travel agency sector seem to be mitigated, as JD has not significantly increased its marketing efforts, potentially missing the peak season. These factors contribute to a favorable outlook for Trip.com, supporting the Buy rating.
In another report released on June 13, Benchmark Co. also maintained a Buy rating on the stock with a $80.00 price target.