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On Tuesday, Morgan Stanley (NYSE:MS) analysts adjusted their price target for Trip.com Group Limited (NASDAQ:TCOM), increasing it to $78 from a previous target of $73. The analysts maintained their Overweight rating on the stock. According to InvestingPro data, Trip.com, currently trading at $63.65, shows promising fundamentals with an impressive 81% gross profit margin and a market capitalization of $41.6 billion.
The decision to raise the price target was influenced by adjustments in the macro foreign exchange forecast. The analysts now assume an exchange rate of 7.15 RMB per US dollar, compared to their earlier assumption of 7.5 RMB per US dollar. This change in currency forecast led to the revised price target. InvestingPro analysis indicates the company is currently undervalued, with a strong financial health score of 3.42 (GREAT).
While the price target has been increased, the analysts did not alter other key assumptions and estimates for Trip.com. The Overweight rating indicates that Morgan Stanley continues to see positive prospects for the company’s stock performance.
Additionally, the analysts updated their bull and bear case values for Trip.com. The new bull case value is set at $91, up from $85, while the bear case value is adjusted to $47 from $45. These changes align with the revised base case value.
Morgan Stanley’s updated assessment reflects the firm’s outlook on Trip.com’s potential in light of currency exchange rate forecasts, maintaining a positive stance on the stock’s future.
In other recent news, Trip.com Group Limited reported a 16.2% year-over-year increase in first-quarter revenue for 2025, reaching 13.8 billion yuan, in line with market estimates. Operating profit for the quarter was 3.56 billion yuan, with gross margin slightly below expectations at 80.4%. Citi analysts increased their price target for Trip.com to $78, maintaining a Buy rating, following solid performance in domestic hotel bookings and outbound travel. Benchmark analysts also reiterated their Buy rating with an $80 target, emphasizing the company’s strong first-quarter results and continued growth in international travel. Bernstein SocGen Group maintained an Outperform rating with a $75 target, noting the company’s strategic approach to discounting in response to competitive pressures. Meanwhile, CFRA adjusted its price target to $65, sustaining a Hold rating, reflecting anticipated revenue growth moderation in the coming years. Trip.com continues to focus on expanding into lower-tier cities in China and enhancing its product offerings to support growth. The company also aims to improve user engagement and operational efficiency through artificial intelligence.
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