Trip.com Group Limited (NASDAQ:TCOM) is a prominent travel service provider, offering a variety of services such as accommodation reservations, transportation ticketing, and corporate travel management. The company operates under well-known brands like Ctrip, Qunar, Trip.com, and Skyscanner, serving both domestic and international markets. Founded in 1999 and based in Singapore, Trip.com has become a key player in the travel industry.

The consensus price target for Trip.com has remained stable at $79.67 over the past month and quarter, indicating a consistent outlook from analysts. This stability suggests confidence in the company's performance despite recent stock price declines. The price target has increased from $74.01 a year ago, reflecting a positive shift in analyst sentiment, possibly due to improved business performance or favorable market conditions.

Trip.com's recent stock price decline is seen as unjustified, given the company's strong revenue growth and improved operating and net margins. The travel and tourism market in China, Trip.com's key market, is experiencing significant growth, offering substantial revenue potential. This growth provides a competitive advantage over competitors focused on slower-growing regions. Analyst Ellie Jiang from Macquarie has set a price target of $75.40 for Trip.com.

Trip.com reported robust fourth-quarter results, with a 23% year-over-year revenue growth. However, investments in international markets have impacted margins, leading to a dip in US shares, while Hong Kong shares have increased. Analysts recommend buying on the dip, citing promising international expansion and reasonable margin traction as key factors. Trip.com is valued at 15 times its forward EBITDA, suggesting a price of $79 per share, representing a 37% upside.

The company's recent earnings call featured key participants like CEO Jane Sun and CFO Cindy Wang, discussing financial performance and strategic direction. Trip.com achieved quarterly earnings of $0.60 per share, surpassing the Zacks Consensus Estimate of $0.52 per share. This performance marks an improvement from the previous year's earnings of $0.56 per share, reinforcing the positive outlook for the company's stock.

Trip.com Group Limited, trading as NASDAQ:TCOM, is a leading travel service provider. It offers a comprehensive range of travel services, including hotel reservations, transportation ticketing, packaged tours, and corporate travel management. As a major player in the travel industry, TCOM competes with other giants like Expedia and Booking Holdings. The company is set to release its first-quarter 2025 earnings on May 19.

Analysts expect TCOM to report earnings per share (EPS) of $0.86, with revenue projected at $13.8 billion. This reflects a positive outlook, as the company has consistently surpassed expectations in previous quarters. In the last quarter, TCOM reported an adjusted EPS of $0.60, exceeding the estimated $0.52, and saw a 23% increase in net revenue year over year.

Despite a decline in expected earnings per share from $6 to $5.57 compared to the same period last year, TCOM is projected to see an increase in quarterly revenue to $13.82 billion, up from $11.9 billion a year earlier. This growth is driven by strong hotel bookings and increased traffic, as highlighted by the company's robust performance in the travel and hospitality sector.

TCOM's financial metrics indicate a stable market position. The company has a price-to-earnings (P/E) ratio of approximately 19.14 and a price-to-sales ratio of about 5.78. Its enterprise value to sales ratio is around 5.58, and the enterprise value to operating cash flow ratio is notably high at approximately 871.81. These figures suggest a strong valuation in relation to its earnings and revenue.

The company's debt-to-equity ratio is relatively low at 0.28, indicating a conservative use of debt in its capital structure. Additionally, TCOM has a current ratio of approximately 1.51, reflecting its ability to cover short-term liabilities with short-term assets. As the earnings call approaches, analysts continue to revise their forecasts, reflecting dynamic market expectations surrounding TCOM's performance.

Bernstein SocGen Group reaffirmed its Outperform rating on Trip.com (NASDAQ:TCOM), maintaining a $75 price target and naming it the firm’s top pick within its coverage universe. Analysts believe the current market valuation, hovering around 13 times forward earnings, significantly underestimates the company’s potential—even when factoring in conservative growth assumptions.

While macroeconomic headwinds remain a concern, Bernstein sees Trip.com as well-positioned to weather turbulence in the travel sector. In a modeled scenario of a 1% GDP decline, the firm expects a moderate impact on the company’s performance, with outbound travel dipping by 5% and hotel growth slowing by 2% due to consumer downtrading. However, analysts argue that a shift toward more affordable domestic travel could largely offset international softness, keeping overall revenue growth resilient—dipping only slightly from 16% to 14% for the full year.

Bernstein also compared Trip.com’s risk-reward profile to peers. Tencent Music Entertainment (TME) is viewed as a steady performer with stable earnings, though its valuation is already aligned with its current earnings trajectory. Baidu, on the other hand, is seen as more vulnerable, with its AI monetization efforts potentially derailed by greater exposure to macroeconomic volatility.

In contrast, Trip.com’s strong domestic market, diversified travel offerings, and potential to benefit from travel pattern shifts reinforce its appeal. With a compelling valuation and manageable risk factors, Bernstein continues to see substantial upside for the stock.

Bernstein SocGen Group reaffirmed its Outperform rating on Trip.com (NASDAQ:TCOM), maintaining a $75 price target and naming it the firm’s top pick within its coverage universe. Analysts believe the current market valuation, hovering around 13 times forward earnings, significantly underestimates the company’s potential—even when factoring in conservative growth assumptions.

While macroeconomic headwinds remain a concern, Bernstein sees Trip.com as well-positioned to weather turbulence in the travel sector. In a modeled scenario of a 1% GDP decline, the firm expects a moderate impact on the company’s performance, with outbound travel dipping by 5% and hotel growth slowing by 2% due to consumer downtrading. However, analysts argue that a shift toward more affordable domestic travel could largely offset international softness, keeping overall revenue growth resilient—dipping only slightly from 16% to 14% for the full year.

Bernstein also compared Trip.com’s risk-reward profile to peers. Tencent Music Entertainment (TME) is viewed as a steady performer with stable earnings, though its valuation is already aligned with its current earnings trajectory. Baidu, on the other hand, is seen as more vulnerable, with its AI monetization efforts potentially derailed by greater exposure to macroeconomic volatility.

In contrast, Trip.com’s strong domestic market, diversified travel offerings, and potential to benefit from travel pattern shifts reinforce its appeal. With a compelling valuation and manageable risk factors, Bernstein continues to see substantial upside for the stock.

Jefferies reaffirmed its Buy rating and $77 price target on Trip.com Group (NASDAQ:TCOM), expressing confidence in the company’s ability to deliver on expectations for the current quarter and beyond.

Jefferies sees robust domestic demand driving growth in hotel bookings and air ticketing, with volume expansion as the primary catalyst. Outbound travel trends also continue to gain momentum, as more travelers extend their range, boosting international activity on the platform.

Trip.com is also expected to benefit from its accelerated adoption of artificial intelligence, which is enhancing both user experience and operational efficiency. Jefferies believes the integration of AI tools will play a key role in driving cost savings and increasing engagement.

Jefferies reaffirmed its Buy rating and $77 price target on Trip.com Group (NASDAQ:TCOM), expressing confidence in the company’s ability to deliver on expectations for the current quarter and beyond.

Jefferies sees robust domestic demand driving growth in hotel bookings and air ticketing, with volume expansion as the primary catalyst. Outbound travel trends also continue to gain momentum, as more travelers extend their range, boosting international activity on the platform.

Trip.com is also expected to benefit from its accelerated adoption of artificial intelligence, which is enhancing both user experience and operational efficiency. Jefferies believes the integration of AI tools will play a key role in driving cost savings and increasing engagement.