One of the major Hong Kong-listed stocks, multinational travel company Trip.com Group Ltd (HK:9961) (NASDAQ:TCOM), has won the favour of analysts after reporting triple digit year-over-year revenue growth for the fourth quarter and full year Fiscal 2023. Analysts see more upside in the stock following the stellar Q4 performance.
Trip.com provides a full range of travel services, including accommodation reservations, ticketing, packaged tours, and corporate travel management. It is the largest online travel agency in China with operations spread globally. 9961 shares have gained over 7% in the past year.
Details About Trip.com’s Q4 Results
Trip.com’s net revenue jumped 105% year-over-year to RMB10.3 billion in Q4 2023, backed by solid recovery in travel demand and surge in travel bookings. However, net income attributable to Trip.com Group shareholders dropped 38% year-over-year to RMB1.3 billion due to higher costs and taxes.
Overall, full year net revenue grew 122% and net income attributable to Trip.com shareholders surged 608% compared to Fisal 2022.
Here’s How Analysts Reacted to Trip.com’s Performance
Impressed by the company’s Q4 print, several analysts lifted the price target on Trip.com shares. J.P. Morgan analyst Alex Yao raised the price target on 9961 shares to HK$424 (21.8% upside) and maintained his Buy rating.
China Galaxy International analyst Lei Yang also raised the price target on 9961 shares to HK$480 (37.8% upside) from HK$460 and reiterated a Buy rating.
Moreover, Mizuho Securities analyst James Lee raised the price target on the company’s ADS (American Depositary shares) and kept a Buy rating. Lee is encouraged by the company’s profitability, demand recovery, and efficiency gains. Furthermore, Lee believes that the two hindrances to outbound growth, namely capacity and visa, have begun easing, giving more room to revenue growth.
At the same time, analysts at research firms UBS and Jefferies shared their views on the company’s results. The analysts are encouraged by the margin recovery story and the optimistic growth outlook for 2024, backed by the expected rebound in domestic and international travel demand.
Is Trip.com Stock a Buy?
With four unanimous Buy ratings, 9961 stock commands a Strong Buy consensus rating on TipRanks. The Trip.com Group Ltd share price forecast of HK$474.50 implies 36.3% upside potential from current levels.
Ending Thoughts
Trip.com’s latest results and solid outlook indicate a brighter picture for its future performance. The travel booking company is witnessing a surge in demand both in the domestic and international markets. Importantly, analysts remain optimistic about Trip.com’s long-term growth prospects.
