Trip.com Group (NASDAQ:TCOM) delivered upbeat results for the second quarter of 2023. The online travel and related services provider experienced robust demand in both domestic and international business. Also, travel demand remained resilient in China.
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Adjusted earnings per ADS of $0.7 in the second quarter exceeded the Street’s expectations of $0.5 per share and compared favorably with a loss of $0.05 reported in the same quarter last year. Meanwhile, Trip.com’s Q2 net revenues increased 159.2% year-over-year to $1.55 billion and surpassed analysts’ expectations of $1.48 billion.
In other key metrics, domestic hotel bookings increased 170% year-over-year. Moreover, TCOM’s global platform saw 120% year-over-year growth in overall air ticket bookings.
TCOM is optimistic about its future prospects, citing strong business momentum driven by robust demand for leisure travel. In July, the company observed a 10% to 15% increase in air passenger volume in the domestic market compared to 2019 levels. Additionally, international air passenger volume had recovered to over 50% quarter-to-date. This indicates a positive trend in the travel business for the company.
What is the Price Target for TCOM?
Currently, Wall Street is highly optimistic about the company’s growth prospects. TCOM stock commands a Strong Buy consensus rating based on 14 unanimous Buys. The average price target of $49.77 implies an upside potential of 23.3% from the current level. Shares of the company have gained 13.1% so far in 2023.
Investors looking for the most accurate forecast regarding the performance of TCOM stock over the past year may turn to Bank of America Securities analyst Joyce Ju. It is noteworthy that copying the analyst’s trades and holding each position for a year would yield an average return of 20.44% per trade and an overall success rate of 83.33%.
