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Buy Rating Maintained for Trip.com as Revenue and Margins Soar Amidst Strategic Market Capture – TipRanks Financial Blog

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Jefferies analyst Thomas Chong maintained a Buy rating on Trip.com Group Ltd. Sponsored ADR (TCOMResearch Report) yesterday and set a price target of $60.00.

Thomas Chong has given his Buy rating due to a combination of factors that suggest a positive outlook for Trip.com Group Ltd. Sponsored ADR (TCOM). Among these, he anticipates the company to perform well in the first quarter of 2024, with a revenue increase forecast of 26% year-over-year to RMB 11.6 billion. This growth is expected across various segments, including a significant 121% increase in packaged tour revenue. Chong also points out Trip.com’s potential to capture more of the market share in both domestic and outbound travel sectors, attributing this to the company’s effective execution, return on investment-centric spending, and improved marketing strategies.
Furthermore, Chong’s optimism is bolstered by the expectation of a higher non-GAAP operating margin reaching approximately 27%, driven by better marketing efficiency and conversion rates, as well as internal cross-selling initiatives. With a detailed focus on the upcoming earnings call, Chong is keen to assess various aspects of the business, from travel demand trends to competitive dynamics in lower-tier cities. Despite acknowledging potential risks such as macroeconomic challenges and increased competition, his maintained Buy rating reflects a confidence in Trip.com’s strategic positioning and ability to navigate the market effectively.

In another report released yesterday, Citi also assigned a Buy rating to the stock with a $55.00 price target.

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Trip.com Group Ltd. Sponsored ADR (TCOM) Company Description:

Trip.com Group Ltd. engages in the provision of travel-related services. It provides hotel accommodations, airline tickets, packaged tours, corporate travel management services, property management systems, and advertising services. The company was founded by Jian Zhang Liang, Min Fan, Nan Peng Shen, and Qi Ji in June 1999 and is headquartered in Shanghai, China.

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