TCOM Stock On Track To Hit Lowest Levels Since August 2024 – A Look At Wall Street’s Take On Trip.com

Barclays has lowered its price target on Trip.com to $60 from $75 and kept an ‘Overweight’ rating on the stock.

• Citi analyst Brian Gong also lowered Trip.com's price target to $64 from $82 and kept a ‘Buy’ rating on the stock.
• Barclays called Trip.com’s guidance disappointing.
• The company flagged its net revenue growth for the second quarter to slow down to about 3% to 8%, with an impact on margins and bottom-line results.

Shares of Trip.com (TCOM) were in the spotlight on Friday after Barclays lowered its price target on the stock, citing rising fuel costs and regulatory breakdown by China that have pressured Trip.com’s revenues.

Barclays has lowered its price target on TCOM to $60 from $75 and kept an ‘Overweight’ rating on the stock. The firm added that, although the first-quarter results were strong, the guidance was disappointing, according to TheFly.

Wall Street Flags Concerns Over TCOM’s Q2 Guidance

Citi analyst Brian Gong also lowered Trip.com's price target to $64 from $82 and kept a ‘Buy’ rating on the stock. The firm called the company's second-quarter sales growth guidance ‘weak,’ noting that elevated fuel costs have hurt Trip.com’s demand. The firm stated that the long-term thesis for the stock has remained intact.

Meanwhile, Benchmark analyst Fawne Jiang cut Trip.com’s price target to $65 from $72, keeping the ‘Buy’ rating intact. The firm said management’s softer-than-expected second-quarter guidance has reset the near-term growth projections.

Analyst James Lee from Mizuho has cut the company’s price target to $65 from $79 and kept an ‘Outperform’ rating. After a ‘solid’ first-quarter report, Mizuho cited revised FY26 and FY27 estimates that reflect near-term headwinds for the lowered target.

According to the Koyfin data, out of 28 analysts, 26 recommend ‘Buy’ or higher rating on the stock, while two recommend a ‘Hold’ rating.

The 12-month average price target of $66.42 implied over 64% potential upside on the stock from its Thursday’s closing price of $40.49, according to the Koyfin data.

TCOM’s Q1 Earnings

Trip.com reported a strong first-quarter report with revenue coming in at RMB16.2 billion ($2.4 billion), beating analysts’ expectations of RMB15.8 billion and reported adjusted earnings of RMB5.73 per share that met the consensus, according to Fiscal.ai data.

However, the company flagged that its net revenue growth for the second quarter would slow to about 3% to 8%, with an impact on margins and bottom-line results.

“Growth has moderated from the exceptionally strong Q1 environment, reflecting a combination of macro and operational factors,” said Jane Sun, Chief Executive Officer at Trip.com during an earnings call.

What Retail Thinks Of TCOM

On Stocktwits, retail sentiment surrounding the stock has declined to ‘neutral’ from ‘bullish’, while message volumes have increased to ‘extremely high’ from ‘high’ in the past 24 hours.

TCOM stock has sunk over 31% so far this year.

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