UPDATE: Bernstein Starts Trip.com Group Limited (TCOM) at Outperform

Bernstein analyst Cherry Leung initiates coverage on Trip.com Group Limited (NASDAQ: TCOM) with a Outperform rating and a price target of $51.00.

The analyst comments "Initiating on TCOM (also known as Ctrip) with Outperform, TP USD 51, +25% potential upside. We expect Ctrip to start recovering in the next 2-3 quarters, but FY21 revenue will only be at 65% of FY19. The company should return to a growth state in 2022, with revenue increasing 8% from FY19, and non-GAAP operating income up by 7%, 11% above consensus. We like Ctrip's strong presence in the affluent segment. The company will ride on the long-term travel upgrade trend. We expect Chinese travelers' total spending to increase at a compound rate of 7% in 2019-26 as their income grows. Ctrip's GTV (gross transaction value) per order is two times of its peers in China and it has the most affluent hotel inventory mix, 2.7 times of industry average. A rising demand for better hotel and trip experience will play to Ctrip's advantage."

For an analyst ratings summary and ratings history on Trip.com Group Limited click here. For more ratings news on Trip.com Group Limited click here.

Shares of Trip.com Group Limited closed at $41.75 yesterday.

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