CITIC International raised Trip.com’s U.S. stock target price to $83, with third-quarter performance exceeding expectations

Zhao Yin International Research Report indicates that Trip.com Group (09961.HK) achieved a total revenue growth of 15.5% year-on-year in the third quarter, reaching RMB 18.4 billion, which is 1% higher than the bank and market expectations; non-GAAP operating profit was RMB 6.1 billion, exceeding the bank's expectations by 5%, due to better-than-expected operating leverage. Non-GAAP net profit was RMB 19.2 billion, far exceeding the market expectation of RMB 5.6 billion, mainly benefiting from a one-time gain from the sale of a portion of its stake in MakeMyTrip.

The bank believes that the group's overseas expansion is progressing smoothly, with average investment expenditure and revenue growth, which will create long-term value for the company. Based on the growth of international business revenue and the operational efficiency of domestic and outbound businesses exceeding expectations, the bank has raised its revenue forecasts for 2025 to 2027 by 1% to 5% and operating profit forecasts by 0% to 5%; the target price for Trip.com (TCOM.US) in the US stock market has been raised from $76 to $83, maintaining a "Buy" rating