Deutsche Bank maintains "Buy" rating on Trip.com, expects travel demand to remain robust

Deutsche Bank published a research report indicating that Trip.com (09961.HK) performed better than expected in the fourth quarter of last year, reflecting robust demand across all business segments. The international business platform recorded approximately 60% year-on-year growth, mainly benefiting from the increased online penetration rate in the Asia-Pacific region, while the average daily room rate for domestic hotels also returned to year-on-year growth.

However, Deutsche Bank also warned that risks from the policy level have not been eliminated. The investigation by the State Administration for Market Regulation and its potential operational adjustments remain the main risks at present. In response to potential impacts, revenue forecasts for the fiscal years 2026 and 2027 have been lowered by 1%, and adjusted net profit forecasts have been reduced by 4% and 5%, respectively. The target price has been lowered from HKD 724 to HKD 630, maintaining a "Buy" rating