Citi slightly raised its earnings forecast for Trip.com for the next two years, rating it as "Buy."

Citi published a research report indicating that, benefiting from strong travel demand during the Spring Festival holiday, Trip.com-S (09961.HK) recorded double-digit year-on-year growth in domestic hotel night stays and outbound bookings, reflecting a good growth momentum for domestic and outbound business in the first quarter of this year. The booking growth momentum for its platform Trip.com also maintained an approximately 60% year-on-year increase.

The bank believes that inbound tourism to China is performing strongly, and Trip.com may benefit from its brand advantages and the scale of its travel products in the Chinese market. The investigation launched earlier by the State Administration for Market Regulation is still ongoing, and Citi believes that it may bring uncertainty to the group's domestic hotel business in the short term, but remains optimistic about its positioning in the travel industry.

Based on the stronger-than-expected growth momentum in the first quarter and robust demand for tourism in China, Citi has raised its earnings forecasts for this year and next year by 2% and 1%, respectively, maintaining a "Buy" rating for Trip.com (TCOM.US) with a target price of $82, believing that Trip.com's valuation has become more attractive after the recent market weakness