BofA update shows where active managers are putting money
Investing.com - JPMorgan has raised its price target on Trip.com Group Limited (NASDAQ:TCOM) to $90.00 from $75.00 while maintaining an Overweight rating on the stock. The company’s stock, currently trading near its 52-week high of $77.18, has delivered an impressive 61% return over the past year.
The price target increase comes after Trip.com Group delivered solid second-quarter 2025 results and provided a healthy financial outlook for the third quarter of 2025, according to JPMorgan. The company demonstrated strong fundamentals with an 80.9% gross profit margin and 17.5% revenue growth in the last twelve months.
The firm noted that Trip.com Group has underperformed the sector average by 10 percentage points in the past three months, measured against KWEB, due to investor concerns about JD’s potential entrance into the China domestic OTA market and impacts from a lackluster summer travel market. According to InvestingPro, the company maintains strong financial health with more cash than debt on its balance sheet and liquid assets exceeding short-term obligations.
JPMorgan believes Trip.com Group is well-positioned as a market leader in online travel agencies with a strong footprint among mid to high-end consumers, allowing it to capture several key trends including spillover effects from an A-share rally, outbound travel, international OTA expansion, and inbound travel.
The new price target is based on a rollover of JPMorgan’s valuation to 2026 while maintaining the same 20x target multiple.
In other recent news, Trip.com Group Limited reported strong financial results for the second quarter of 2025, showcasing significant year-over-year growth. The company’s net revenue increased by 16% to RMB 14.8 billion, and its non-GAAP diluted earnings per ADS reached US$1.01. This performance exceeded expectations, as noted by Benchmark, which maintained its Buy rating and $80 price target, emphasizing robust travel demand across key markets. Barclays also raised its price target for Trip.com to $85, citing strong growth in China’s inbound travel market. The firm highlighted that inbound travel bookings rose more than 100% year-over-year, indicating substantial growth potential. Trip.com’s management pointed out that inbound travel currently accounts for less than 0.5% of China’s GDP, suggesting room for expansion. Despite the positive earnings report, there was a slight decline in the stock’s after-hours trading. These developments reflect the company’s ongoing resilience and opportunities in the travel sector.
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