Hong King-listed Trip.com Group Limited’s (HK:9961) stock rose nearly 6% as of writing after the company delivered impressive Q3 results, fueled by strong travel demand. The company reported 16% year-over-year growth in Q3 net revenues of ¥15.9 billion. Compared to the previous quarter, Q3 revenue rose by 24%, largely driven by seasonal trends.
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Trip.com Group is a leading travel agency, offering services like hotel bookings, air tickets, holiday packages, etc.
Trip.com Reports Solid Q3 Numbers
In the third quarter, Trip.com saw solid growth across its business segments. Within its International business, outbound hotel and air reservations reached 120% of pre-COVID levels. Similarly, bookings in the company’s international OTA brand rose by more than 60% compared to last year.
Meanwhile, Trip.com’s net income climbed to ¥6.8 billion from ¥4.6 billion a year ago.
Jefferies Raises Price Target on Trip.com
Following the favourable results, analyst Thomas Chong from Jefferies raised his price target on 9961 stock from HK$581 to HK$603. The new price target implies 26% upside potential. Chong also reiterated a Buy rating on the stock.
Chong applauded the company’s performance in the third quarter, which exceeded his expectations. Trip.com posted a non-GAAP net profit of ¥5.96 billion, surpassing Jefferies’ forecast of ¥5.47 billion.
Moving ahead, Chong projects a 19% year-on-year rise in Q4 total revenue to ¥12.3 billion, up from the earlier forecast of ¥12 billion. Additionally, he expects the company to maintain strong execution and capitalize on opportunities in international markets.
Is Trip.com a Good Stock to Buy Now?
Overall, as per the consensus among analysts on TipRanks, 9961 stock has a Strong Buy rating based on four Buy recommendations. The Trip.com share price target is HK$566.25, which implies an upside of 18.4% from the current price level.
Year-to-date, 9961 stock has gained 80.4% in trading.
