Trip.com's Prospects Seem Upbeat Despite Some Softer Estimates

Dow Jones12:35

0435 GMT - Trip.com's long-term prospects still appear upbeat despite likely softer estimates for some segments, DBS Group Research analysts say in a note. The Chinese travel platform operator's 3Q local hotel revenue is likely to decline by a single-digit percentage on year, partly due to the removal of automated pricing tools, they note. Domestic transportation revenue is likely to drop on factors such as lower transaction volumes, they add. The analysts cut their 2026-2027 earnings estimates by 3%-5%. Still, they reckon the company's long-term outlook remains rosy thanks to Chinese travel demand's secular growth and Trip.com's Asian expansion. DBS trims its stock target price to 421.00 Hong Kong dollars from HK$431.00 and retains a buy rating. Hong Kong-listed shares are down 2.3% at HK$315.80.

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