Trip.com Group Ltd. Receives Buy Rating Amid Strong Financial Performance and Strategic Growth Initiatives

Trip.com Group Ltd. Sponsored ADR (TCOM – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Joyce Ju from Bank of America Securities reiterated a Buy rating on the stock and has a $68.00 price target.

Joyce Ju has given her Buy rating due to a combination of factors including Trip.com Group Ltd.’s strong financial performance and strategic initiatives. The company concluded 2024 with a significant 23% year-over-year increase in net revenues for the fourth quarter and a robust non-GAAP net profit. Additionally, Trip.com has announced a capital return program that includes a substantial dividend and share repurchase plan for 2025, indicating confidence in its financial health.
Furthermore, despite some pressure on hotel and air pricing, the company is experiencing healthy domestic travel demand and a notable increase in outbound and inbound travel bookings. The management’s expectations for continued momentum in travel demand and profitability, coupled with rapid international growth, support the positive outlook. Although international expansion may pressure margins, Trip.com’s leadership in key travel segments and sustained growth potential through global market expansion justify the Buy rating. The stock’s valuation, with a price objective of $68, reflects these growth prospects.

In another report released today, HSBC also maintained a Buy rating on the stock with a $75.00 price target.