TCOM - Trip.com gains after Morgan Stanley turns bullish

Morgan Stanley upgrades Trip.com (TCOM) to an Overweight rating after having it set at Equal Weight. The firm notes that outbound travel carries 4X to 5x better unit economics than domestic travel, and is a multi-year earnings driver. Analyst Alex Poon: "We see an upward revenue revision cycle beginning in 2Q21 driven by normalized domestic travel. We also think the Street will price-in a recovery in outbound travel in the next 12 months. We also lay out our bull case where TCOM regains share in lower-tier cities." MS assigns a price target of $50 to TCOM. Shares of Trip.com are up 2.66% premarket to $38.50. The 52-week high for the online travel stock is $45.19.

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Trip.com gains after Morgan Stanley turns bullish