Bernstein maintains Trip.com Outperform rating, $75 target

Published 17/04/2025, 17:54
Bernstein maintains Trip.com Outperform rating, $75 target

On Thursday, Bernstein analysts maintained their Outperform rating and a $75.00 price target for Trip.com Group Limited (NASDAQ:TCOM) shares. The endorsement comes amidst observations of China’s travel sector, which is experiencing stable positive growth in travelers. This trend is supported by robust domestic travel and a resilient, albeit small, outbound segment that has withstood challenges from Southeast Asia (SEA) travel disruptions. The company’s impressive 81.25% gross profit margin and strong revenue growth of 19.73% in the last twelve months underscore its operational efficiency.

Trip.com’s stock is currently perceived as attractive based on its valuation and the anticipation of a stronger second half of 2025 for its international business. Despite an 18.73% decline year-to-date, analysts argue that Trip.com is reasonably priced when considering its growth profile, with a notably low PEG ratio of 0.23. Concerns regarding the company’s international business are expected to diminish as the year progresses. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report.

Analysts highlighted that while hotel supply growth is under pressure due to the broader real estate issues, Trip.com’s resilient performance makes it a compelling choice for investors. The company’s stock is recommended for accumulation during periods of weakness, as it is believed that the latter part of the year will bring positive momentum for the international business segment. InvestingPro data reveals the company maintains excellent financial health with an overall score of 3.36 (GREAT), supported by strong cash positions exceeding debt levels.

The analyst’s commentary points to Trip.com’s favorable position despite the ongoing challenges in the travel industry, particularly in the SEA region. The company’s ability to maintain growth in the face of these difficulties has been noted as a testament to its resilience.

In conclusion, Bernstein’s analysts view Trip.com as their top pick in the travel sector, underlining the company’s potential for growth and recommending investors to take advantage of the current stock price. The firm’s sustained Outperform rating and price target suggest confidence in Trip.com’s performance and future outlook.

In other recent news, Trip.com Group Limited reported a 72% year-over-year increase in earnings per ADS (EPADS) to CNY26.20, with revenue rising 15% to CNY53.3 billion. This growth was driven by a 25% increase in accommodation reservations, a 10% rise in transportation ticketing, and a 7% increase in other business segments. Despite these positive results, CFRA downgraded Trip.com’s stock from Strong Buy to Hold, lowering the price target to $60, citing expected weaker consumer spending trends. Conversely, Jefferies maintained a Buy rating with a $77 price target, highlighting the benefits of increased domestic hotel and air ticketing revenue and the integration of artificial intelligence for enhanced user experience. Bernstein also reiterated an Outperform rating with a $75 target, emphasizing Trip.com’s potential to navigate macroeconomic challenges through increased domestic travel. Benchmark analysts echoed a positive sentiment, maintaining a Buy rating and an $80 price target, despite noting a contraction in operating profit margins due to international expansion efforts. These developments come amid broader market volatility, with Chinese stocks facing pressure from escalating trade tensions between the U.S. and China.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.