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Unveiling 10 Analyst Insights On Trip.com Group

Author: Benzinga Insights | May 21, 2024 08:01am

Analysts' ratings for Trip.com Group (NASDAQ:TCOM) over the last quarter vary from bullish to bearish, as provided by 10 analysts.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 7 3 0 0 0
Last 30D 1 0 0 0 0
1M Ago 1 0 0 0 0
2M Ago 3 0 0 0 0
3M Ago 2 3 0 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $59.1, along with a high estimate of $72.00 and a low estimate of $52.00. This upward trend is apparent, with the current average reflecting a 12.44% increase from the previous average price target of $52.56.

price target chart

Analyzing Analyst Ratings: A Detailed Breakdown

A clear picture of Trip.com Group's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Fawne Jiang Benchmark Raises Buy $72.00 $55.00
Elinor Leung CLSA Raises Buy $64.00 $55.00
Fawne Jiang Benchmark Maintains Buy $55.00 -
Parash Jain HSBC Raises Buy $60.00 $50.00
Brian Gong Citigroup Raises Buy $55.00 $53.00
Kevin Kopelman TD Cowen Raises Outperform $53.00 $45.00
Jiong Shao Barclays Raises Overweight $60.00 $56.00
Wei Xiong UBS Raises Buy $52.00 $48.00
Jiong Shao Barclays Raises Overweight $60.00 $56.00
James Lee Mizuho Raises Buy $60.00 $55.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Trip.com Group. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Trip.com Group compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Trip.com Group's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Trip.com Group's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Trip.com Group analyst ratings.

Unveiling the Story Behind Trip.com Group

Trip.com is the largest online travel agent in China and is positioned to benefit from the country's rising demand for higher-margin outbound travel as passport penetration is only 12% in China. The company generated about 78% of sales from accommodation reservations and transportation ticketing in 2020. The rest of revenue comes from package tours and corporate travel. Before the pandemic in 2019, the company generated 25% of revenue from international business, which is important to its margin expansion. Most of sales come from its online platform, but the company also maintains offline call centers. The competes in a crowded OTA industry in China, including Meituan, Alibaba-backed Fliggy, Tongcheng, and Qunar. The company was founded in 1999 and listed on the Nasdaq in December 2003.

Trip.com Group: Financial Performance Dissected

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, Trip.com Group showcased positive performance, achieving a revenue growth rate of 105.39% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 12.56%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Trip.com Group's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.06%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Trip.com Group's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.58%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Trip.com Group's debt-to-equity ratio is below the industry average. With a ratio of 0.37, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: TCOM