Kevin Kopelman, an analyst from TD Cowen, maintained the Buy rating on Trip.com Group Ltd. Sponsored ADR (TCOM – Research Report). The associated price target is $67.00.
Kevin Kopelman’s rating is based on several key observations about Trip.com Group Ltd.’s performance and strategic positioning. The company demonstrated strong revenue growth in the fourth quarter, surpassing expectations with a 23% year-over-year increase, attributed to domestic market share gains and significant growth in international operations. This positive momentum is expected to continue, with first-quarter revenue projections indicating an increase of 14-19%, driven by robust outbound travel and substantial growth in Trip.com’s revenue.
Despite a slight reduction in the price target from $71 to $67, the Buy rating reflects confidence in Trip.com’s strategic investments and market position. The company has increased its advertising spend to support growth, which has impacted margins slightly but is seen as a necessary step to maintain competitive advantage. Additionally, Trip.com’s strong cash position, with net cash and investments accounting for a significant portion of its share price, provides a solid financial foundation to support future growth initiatives.
In another report released on February 10, Bernstein also maintained a Buy rating on the stock with a $80.00 price target.