CFRA Hikes Price Target on Trip.com (TCOM), Maintains Hold Rating

On Tuesday, CFRA analyst Siti Salikin raised the price target on Trip.com Group Limited (NASDAQ:TCOM) to $65 from $60 while citing the stock's five-year P/E average of 41.

Additionally, the analyst reiterated a Hold rating on the stock on concerns that the company’s revenue growth will slow down to 14.8% in 2025. The growth rate is also expected to slow in 2026 to 13.5%. Nevertheless, the analyst remains optimistic about the company’s long-term prospects owing to the anticipated resurgence of domestic travel and international tourism.

The analyst also expects Trip.com to benefit from visa-free policies between China and other countries. A recovery of cross-border flight capacities is also likely to strengthen the company’s revenue base. Trip.com is increasingly expanding into lower-tier cities in China. It’s also broadening its range of product offerings as it seeks to unlock new growth opportunities.

The only downside to the expansion drive is the expected spike in sales and marketing expenses. Increased operational costs are expected to trigger a dip in net margin in 2025. The company delivered solid first-quarter 2025 results. Revenue was up 16.2% year-over-year to 13.8 billion yuan as operating profit totaled 3.56 billion yuan, aligning with analysts’ estimates. Trip.com reported 3.56 billion yuan in operating profit, though its 80.4% gross margin dipped due to increased revenue from its own services. The company maintains a mid-teens growth forecast for Q2 and FY2025, fueled by rising international travel demand.