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Investing.com - Barclays raised its price target on Trip.com Group Limited (NASDAQ:TCOM) to $85.00 from $84.00 on Thursday, while maintaining an Overweight rating on the stock. The $40.77 billion market cap company currently trades at $74.54, with analysts maintaining a strong consensus buy rating and targets ranging from $64.75 to $96.85.
The firm cited strong growth in China’s inbound travel market, with Trip.com reporting inbound travel bookings up more than 100% year-over-year. Barclays noted management’s observation that inbound travel currently represents less than 0.5% of China’s GDP, compared to 1-5% in many other countries, suggesting significant growth potential. InvestingPro data shows the company’s impressive 81.06% gross profit margins and robust 16.95% revenue growth over the last twelve months, supporting this growth narrative.
Trip.com’s outbound travel business has exceeded pre-Covid levels by more than 20%, despite flight capacity only recovering to 84% of pre-pandemic levels. The company’s international business, trip.com, delivered 60% year-over-year growth and accounted for approximately 14-15% of revenue.
Barclays expressed confidence in both domestic and outbound travel as secular growth areas in China, positioning Trip.com as a primary beneficiary of these trends. The firm also highlighted management’s optimistic tone regarding the near-term outlook.
Trip.com further demonstrated its commitment to shareholder returns by announcing a new $5 billion share buyback program, according to Barclays. The company trades at a P/E ratio of 18.49, which InvestingPro analysis suggests represents fair value relative to its growth prospects.
In other recent news, Trip.com Group Ltd reported a robust financial performance for the second quarter of 2025. The company saw a 16% year-over-year increase in net revenue, reaching RMB 14.8 billion. Additionally, the non-GAAP diluted earnings per ADS were reported at US$1.01, indicating significant growth in earnings per share. Despite these positive earnings results, Benchmark maintained its Buy rating and set a price target of $80.00 for Trip.com. The investment firm highlighted strong travel demand, especially in the leisure segment, as a key factor in the company’s performance. These developments reflect strong revenue and profitability that exceeded expectations. However, it’s noted that Trip.com’s stock experienced a slight decline in after-hours trading. This suggests cautious investor sentiment despite the company’s positive financial results.
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