Trip.com: Revenue Strength Offsets Citigroup's Price Target Cut

Key Facts

1Citigroup lowered its price target for Trip.com from $82 to $64 while maintaining a 'Buy' rating.

2Trip.com reported Q1 earnings of $0.83 per share, missing analyst estimates of $0.85.

3Revenue surged 17% year-over-year to $2.35 billion, beating expectations due to strong demand for travel services.

Amid a resilient global travel sector, Trip.com's Q1 results delivered a mixed picture. According to reports, Citigroup lowered its price target for the stock from $82 to $64 while maintaining a 'Buy' rating, after the company reported earnings per share of $0.83, missing the analyst consensus of $0.85. However, revenue surged 17% year-over-year to $2.35 billion, beating expectations on strong demand for travel services.

The moves reflect a dual narrative: while the strong revenue growth underscores solid travel momentum, the price target cut suggests earnings expectations need recalibration. The stock currently trades at $46.30 (close June 24), a significant discount to the new $64 target, potentially offering upside if operational strength continues.

Investors are now focusing on forward travel indicators, with the summer season acting as a key test for booking momentum. With Citigroup retaining its Buy rating, the stock may find support at the $45.30 low (June 24) before any upside breakout, while macroeconomic data such as consumer confidence and other travel industry earnings could serve as catalysts for the next move.