Wall Street closes at a record for the first time since end of January
Investing.com - Benchmark lowered its price target on Trip.com Group Limited (NASDAQ:TCOM) to $72 from $82 while maintaining a Buy rating on the stock. The stock currently trades at $52.66, near its 52-week low of $51.35, and according to InvestingPro analysis, appears undervalued relative to its Fair Value.
The firm cited the company’s fourth-quarter 2025 results and first-quarter 2026 guidance. Trip.com delivered results that exceeded expectations in the fourth quarter and provided in-line guidance for the first quarter.
Benchmark noted resilient travel demand, strong Chinese New Year trends, and continued momentum in Trip.com’s international business. The firm also pointed to an ongoing investigation by China’s State Administration for Market Regulation that introduces near-term uncertainty.
The firm maintained its fiscal 2026 revenue growth forecast of 14% for Trip.com. Benchmark trimmed its margin assumptions to reflect continued investment in international expansion and artificial intelligence initiatives.
Benchmark cited Trip.com’s international penetration, overseas market growth, AI capabilities, supply chain relationships, and service platform as factors supporting its longer-term view on the stock. InvestingPro subscribers have access to over 10 additional ProTips for TCOM, plus a comprehensive Pro Research Report covering the company’s full investment thesis.
In other recent news, Trip.com Group Ltd reported its fourth-quarter 2025 earnings, which exceeded analyst expectations. The company achieved an earnings per share (EPS) of $4.97, surpassing the forecasted $4.77, and reported revenue of $15.4 billion, which was higher than the expected $14.86 billion. Despite these positive results, Morgan Stanley adjusted its outlook on Trip.com, lowering the stock price target to $75 from $87 due to anticipated higher operating costs. The firm maintained its Overweight rating on the shares while raising its revenue forecasts for 2026 and 2027 by 1%. However, earnings per share estimates for those years were reduced by 3% to 4% as a result of increased expenses. These developments reflect a mixed outlook for Trip.com, with strong recent earnings overshadowed by concerns over future costs.
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