Morgan Stanley analyst Yang Liu CFA has maintained their bullish stance on TCOM stock, giving a Buy rating on August 29.
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Yang Liu CFA has given his Buy rating due to a combination of factors that highlight Trip.com Group’s promising financial outlook. The company’s non-GAAP operating profit margin (OPM) has shown signs of improvement, with the year-over-year contraction narrowing significantly from 4 percentage points in the fourth quarter of 2024 to just 2 percentage points in the third quarter of 2025. This indicates a stabilization in margins, which is a positive signal for investors.
Additionally, Trip.com’s conservative guidance has been surpassed by the buyside’s operational profit expectations, which are 3-5% higher. This suggests that the year-over-year margin contraction could be minimal, less than 1 percentage point in the third quarter of 2025. The normalization of high investment intensity is expected to result in sustained high growth of 50%, providing confidence in both top- and bottom-line growth for 2026. These factors collectively support the Buy rating as they indicate a stable margin and potential for future profitability.
In another report released on August 29, Bernstein also maintained a Buy rating on the stock with a $78.00 price target.