European stocks mixed on Friday after volatile week; U.K. economic woes
Investing.com - CFRA has reiterated its Hold rating and $80.00 price target on Trip.com Group Limited (NASDAQ:TCOM), according to a research note released Friday. This target aligns closely with InvestingPro’s Fair Value assessment, which suggests the stock is currently slightly undervalued. Notably, the broader analyst consensus is more bullish with a "Strong Buy" recommendation and targets ranging from $69.95 to $96.93.
The research firm projects Trip.com’s revenue growth will moderate to 14.8% in 2025 and 13.5% in 2026, down from an estimated 19.7% in 2024, citing fading pent-up demand and global macroeconomic challenges. This projection follows Trip.com’s solid 17.45% revenue growth over the last twelve months.
Despite the slowdown, CFRA notes growth will be supported by revival of domestic trips and inbound/outbound tourism, partly due to visa-free policies between China and various countries and recovering cross-border flight capacity, as well as Trip.com’s wider product offerings.
The firm expects higher sales and marketing expenses amid heightened competition to weigh on Trip.com’s operating profit margin in 2025, but anticipates margins will broadly stabilize in 2026, aided by scale efficiency and productivity gains. InvestingPro data shows Trip.com maintains impressive gross profit margins of 80.72%, providing substantial cushion to absorb increased marketing costs. The company’s remarkably low PEG ratio of 0.12 and P/E of 11.32 suggest the stock may be undervalued relative to its growth prospects.
CFRA has revised its earnings per ADS estimates to CNY46.26 for 2025 and CNY32.31 for 2026, up from previous estimates of CNY25.80 and CNY30.33, as the firm switched to a non-GAAP basis that factors in significant one-off gains. For investors seeking deeper insights into Trip.com’s financial health and growth prospects, InvestingPro offers comprehensive Pro Research Reports with expert analysis on this and over 1,400 other top stocks.
In other recent news, Trip.com Group Limited reported strong third-quarter 2025 results, significantly surpassing earnings expectations. The company achieved diluted earnings per share of $4.02, which was a remarkable surprise compared to the forecast of $8.09. Revenue also exceeded predictions, reaching $18.34 billion against the expected $18.19 billion. Following these results, several analyst firms have adjusted their price targets for Trip.com. BofA Securities raised its price target to $85, maintaining a Buy rating on the stock. Mizuho increased its target to $84, keeping an Outperform rating, noting that revenue growth was 16% year-over-year and exceeded their expectations. Benchmark also adjusted its price target to $82, citing broad-based strength in the company’s performance, especially in international markets. These developments highlight the positive reception of Trip.com’s latest financial results among analysts.
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