TCOM - Trip.Com Stock Makes It To Analyst's Top Pick Amid expanding China's Outbound Travel | Benzinga
Mizuho analyst James Lee reiterated a Buy rating on the shares of Trip.com Group Ltd (NASDAQ:TCOM) with a price target of $55.00.
For China, the analyst says top-line growth remains uncertain due to macro, but outbound travel is the rare silver lining in an otherwise subdued outlook. As a result, the analyst chooses Trip.com as the top pick.
Heading into FY24, the analyst expects capacity of outbound flights to finally converge with demand, leading to strong rebound in revenue and profitability.
With flight and hotel prices being higher post-pandemic, the analyst expects margin multiples to expand.
The analyst also notes that outbound margins are two times those of domestic travel.
TCOM will benefit from China's outbound travel ...