Trip.com Guides Q2 Growth to 3%–8%, Price Targets Cut to $60–$65
TCOM•Trip.com Q2 net revenue growth is guided to slow to 3%–8%, prompting Barclays, Citi, Benchmark and Mizuho to cut price targets to $60–$65 from prior $72–$82 despite Q1 revenue of RMB16.2 billion. Analysts maintain buy or overweight ratings, and a $66.42 average 12-month target implies 64% upside potential.
1. First-Quarter Performance
Trip.com reported Q1 revenue of RMB16.2 billion, exceeding forecasts of RMB15.8 billion, and delivered adjusted earnings of RMB5.73 per share.
2. Second-Quarter Guidance
Management projected Q2 net revenue growth slowing to 3%–8%, warning of margin pressure and weaker bottom-line results due to elevated costs and softer demand.
3. Analyst Price Target Revisions
Barclays cut its price target to $60 from $75 and kept an overweight rating; Citi lowered its to $64 from $82 with a buy rating; Benchmark reduced its to $65 from $72 with a buy rating; and Mizuho trimmed its to $65 from $79 with an outperform rating, driving an average 12-month target of $66.42 and 64% implied upside.
