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Benchmark maintained its Buy rating and $80.00 price target on Trip.com Group Limited (NASDAQ:TCOM) on Friday, aligning with the broader analyst consensus of Strong Buy. According to InvestingPro data, the stock appears undervalued at current levels, with analysts setting price targets ranging from $61.30 to $96.14. The research firm cited market overreaction to recent Dragon Boat Festival travel data and speculation about JD’s potential entry into the travel sector.
The firm conducted recent non-deal roadshow meetings with Trip.com, which reinforced its confidence in the company’s growth trajectory. This confidence appears well-founded, as InvestingPro data shows impressive revenue growth of 17% and an exceptional gross profit margin of 81%. Benchmark highlighted Trip.com’s solid execution, high earnings visibility, and favorable secular tailwinds as supporting factors for its positive outlook.
Trip.com shares experienced volatility following softer-than-expected travel data from the Dragon Boat Festival and market speculation about competitive threats. Despite these short-term fluctuations, Benchmark views Trip.com as one of the most defensive and structurally sound consumer investments in China, a view supported by the company’s strong financial health score of "GREAT" on InvestingPro, with more cash than debt on its balance sheet.
The research firm emphasized Trip.com’s strong domestic fundamentals and potential for international growth as key strengths. These factors contribute to the company’s resilient business model despite recent market concerns.
Benchmark characterized the recent share price weakness as a buying opportunity and recommended investors accumulate positions during the current dip. The firm maintained its $80.00 price target, suggesting significant upside potential from current levels.
In other recent news, Trip.com Group Limited reported a strong first quarter for 2025, with revenue rising by 16% year-over-year, meeting market expectations. The company’s operating profit reached 3.56 billion yuan, despite higher-than-expected sales and marketing expenses. Analysts from Benchmark and Citi maintained their positive outlook on Trip.com, with price targets set at $80 and $78, respectively. Morgan Stanley (NYSE:MS) also raised its price target to $78, citing favorable currency exchange forecasts, while CFRA increased its target to $65, maintaining a Hold rating.
Bernstein SocGen Group reiterated its $75 price target and Outperform rating, noting Trip.com’s strategic response to competitive pressures in the airline ticketing sector. The firm has focused on discounting airfare to drive hotel cross-selling, while protecting hotel segment profitability. Trip.com’s growth is supported by strong international travel demand and efforts to expand into lower-tier cities in China. Analysts highlighted the company’s strategic use of artificial intelligence to enhance user engagement and operational efficiency.
Despite macroeconomic uncertainties, Trip.com’s digital transformation and global expansion are seen as key factors in maintaining its market position. Citi anticipates a slight deceleration in domestic revenue growth but expects overall momentum to persist. The firm’s ongoing marketing initiatives and geographic diversification are projected to support future growth.
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