Trip.com share price correction overdone, says Citi

Citi says Trip.com shares have corrected 10% over the past week given the weak performance of the domestic hotel industry at the beginning of the summer break. The initial domestic travel demand has been a bit weaker than expected, but Citi attributes the weak hotel performance year-over-year to more hotel supply, inclement weather and more high-end demand diverted to outbound travel, which still benefits Trip.com, the analyst tells investors in a research note. The firm does not see material downside risk in Q3 consensus revenue estimates and still expects “decent upside” potential to 2024 earnings estimates. As such, the analyst views the share selloff as overdone and keeps a Buy rating on the name with a $66 price target.