Citi analysts increased their price target for Trip.com (NASDAQ:TCOM) to $55 from $53, maintaining their Buy rating. The company’s shares gained more than 7% intra-day today.
The analysts initiated a 90-day positive catalyst watch on the company, anticipating sustained travel momentum during upcoming holidays, especially the 5-day Labour Day holiday, which is expected to see further recovery in outbound travel.
Furthermore, the analysts predict a potentially strong Q1/24 result, be announced around mid-May, which could surpass consensus expectations due to potential underestimation of outbound and international travel’s performance and margin improvements.
The analysts suggest that investors might adopt a more constructive stance ahead of the forthcoming results, given Trip.com’s solid track record. The fundamentals for Trip.com remain robust, supported by a resilient domestic and outbound travel outlook and the company’s outperformance over the industry.