This Analyst Views Trip.com As One Of The Most Attractive Reopening Stories Globally

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Benchmark analyst Fawne Jiang reiterated Buy rating on the shares of Trip.com Group Ltd (NASDAQ:TCOM) and raised the price target to $52.00.
Yesterday, the company reported Q3 earnings above Street estimates.
The analyst views Trip.com as one of the most attractive reopening stories globally in the 24 months to come.
China’s swift COVID pivot sets a reopening in force notably earlier and at a much broader scale.
The analyst acknowledges that case surge in the near term could set back business activities and dampen consumer mobility, but it has undoubtedly boosted the reopening visibility, consequently, travel growth outlook.
For the company, the analyst expects a full recovery for domestic and outbound travel from FY19 level by 2024.
The analyst sees highly attractive risk/reward with Trip.com shares and raised price target to $52 as the analyst moves the valuation based on FY24 estimates to reflect the cycle.
The organizational restructuring and effective cost control makes the company a leaner and more efficient operation. This potentially promises higher earnings growth power once normalized revenue growth returns, said the analyst.
Also Read: Beijing Streets Are Empty, Even After Xi Jinping Lifts COVID-19 Restrictions
Price Action: TCOM shares are trading higher by 0.97% at $34.74 on the last check Thursday.

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