Trip.com downgraded to Neutral at Nomura with growth of domestic tours at peak

Nomura analyst Jialong Shi downgraded Trip.com Group to Neutral from Buy with a price target of $41, down from $48, after Q3 earnings beat and Q4 guidance missed expectations. Domestic travel has “had a solid run so far, this year,” driven by strong pent-up demand, but the firm is concerned that growth of its domestic tours has likely peaked and that the momentum of China’s domestic travel is likely to weaken over the next few quarters as Chinese consumers remain cautious, the analyst tells investors.