Trip.com stock price target raised to $85 by BofA on strong bookings

Investing.com - BofA Securities raised its price target on Trip.com Group Limited (NASDAQ:TCOM) to $85.00 from $83.00 while maintaining a Buy rating on the stock. With a current market capitalization of $47.35 billion, InvestingPro analysis suggests the travel giant remains undervalued compared to its Fair Value.

The price target increase follows Trip.com’s third-quarter results, which showed net revenue and non-GAAP operating growth of 16% and 12% year-over-year respectively, exceeding consensus forecasts. The company’s impressive 80.72% gross profit margin and overall revenue growth of 17.45% year-over-year highlight its operational efficiency.

BofA attributed the strong performance primarily to robust hotel bookings during summer holidays and October Golden Week, with domestic volume growing mid-teens percent, outbound volume increasing over 20%, and international volume surging more than 60% year-over-year. As a prominent player in the Hotels, Restaurants & Leisure industry, Trip.com trades at an attractive P/E ratio of 11.32, significantly lower relative to its near-term earnings growth potential.

For the fourth quarter, BofA forecasts net revenue growth of 17% year-over-year, an acceleration from the third quarter, driven by strong holiday demand in overseas markets that helps offset China’s seasonally weakest quarter.

The firm expects Trip.com’s international site to grow revenue 50-60% year-over-year in the fourth quarter, representing high teens percentage of the group’s total revenue.

In other recent news, Trip.com Group reported impressive third-quarter 2025 earnings, significantly surpassing expectations. The company achieved a diluted earnings per share (EPS) of $4.02, far exceeding the forecast of $8.09, representing a substantial surprise of 240.67%. Revenue also outperformed predictions, reaching $18.34 billion compared to the anticipated $18.19 billion. Following these results, Mizuho raised its price target for Trip.com Group to $84 from $81, maintaining an Outperform rating. The firm noted that Trip.com’s revenue growth of 16% year-over-year outpaced its major global online travel agency peers. Similarly, Benchmark increased its price target to $82 from $80, highlighting the company’s strong performance, particularly in international markets. These developments reflect the company’s robust financial health and positive analyst outlook.

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