Trip.com's Long-Term Prospects Remain Positive Despite Near-Term Pressure -- Market Talk

Dow Jones01-16 17:41

0941 GMT - China's investigation into Trip.com over alleged monopolistic practices may trigger headline-driven volatility that weighs on investor confidence, causing near-term stock pressure, Deutsche Bank analyst Leo Chiang says in a note. Citing prior cases, he says potential consequences could involve financial penalties, mandatory business-practice alterations, or limitations on exclusive agreements. If fines are imposed, they could amount to a few percentage points of annual revenue, while compliance costs and operational adjustments may weigh on margins. "This scenario presents an opportunity to strengthen Trip.com's governance and promote sustainable growth," he adds. Still, Deutsche Bank maintains its positive long-term view on strong Chinese travel demand and Trip.com's digital innovation and service quality. The bank maintains a buy call and a US$92.00 target on its ADRs, which last closed at US$61.30. (jason.chau@wsj.com)

 

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January 16, 2026 04:41 ET (09:41 GMT)

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