Citi opens ‘positive catalyst watch’ on Trip.com into earnings

Citi opened a “90-day positive catalyst watch” on shares of Trip.com while keeping a Buy rating on the name with a $66 price target. The firm sees rising possibility of more favorable policies to encourage travel spending, normalized comps for hotel after the Golden Week, which, together with easier comps for transportation take rates, are likely to point “decent” accelerating revenue growth in Q4. The shares offer potential re-rating opportunities with easing concerns over sustainability of travel demand, the analyst tells investors in a research note.