Trip.com named ‘Research Tactical Idea’ at Morgan Stanley

Morgan Stanley named Trip.com a “Research Tactical Idea” while keeping an Overweight rating on the shares with a $64 price target. The company’s domestic business has been pressured by weaker hotel pricing and one-time air ticket adjustments, but both factors will normalize by Q4, implying growth acceleration towards the end of the year, the analyst tells investors in a research note. The firm says this will bring market confidence Trip.com’s domestic growth will sustain in 2025. It sees the Dragon Boat festival in June and summer holiday as the next catalysts and a “much more compelling” short-term valuation following the recent selloff.