TCOM - Trip.com is still a buy at Nomura after earnings impress

Nomura defended Trip.com Group Limited (NASDAQ:TCOM) amid the recent share price weakness on its view that the long-term recovery trajectory remains intact. Analyst Jialong Shi and team noted that Trip.com's (TCOM) Q4 revenue topped expectations with a strong performance across key business lines. "Non-GAAP operating margin was -4.2%, down 14pp y-y, 10pp above our estimate, thanks to the revenue beat and lower R&D spending. As a result, its non-GAAP EPS was CNY0.48, down 73% y-y, better than the Street's CNY0.50 and our CNY0.55 loss estimates, largely owing to the operating margin beat. International business to sustain steady recovery; domestic business recovery temporarily affected by resurgence of pandemic. On the earnings call on 24 March, management indicated that its pure overseas air ticketing volume (excluding outbound travel) surged 2x y-y, driven by a solid recovery in key markets such as Europe." The firm maintained a Buy rating on TCOM and trimmed

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Trip.com is still a buy at Nomura after earnings impress