Key Takeaways:
- Trip.com reported a 16% increase in net revenue year-over-year, yet shares dropped 5.20% due to missing Q1 revenue expectations.
- Analysts predict a potential upside of 17.27% based on an average price target of $74.17.
- The GF Value estimate suggests a 10.56% potential increase from the current stock price.
Trip.com Group Ltd (NASDAQ: TCOM) recently experienced a decline in its stock value, dropping 5.20% to $63.61. This movement followed the company's announcement of its first-quarter financial results, where despite a commendable 16% increase in net revenue year-over-year, they fell short of revenue projections. The travel service provider reported revenues of $1.91 billion, narrowly missing estimates by $10 million, compounded by a dip in hotel average daily rates.
Analyst Price Target Projections
Wall Street analysts have closely monitored Trip.com, providing one-year price targets that reflect varied expectations for its stock performance. Collectively, 29 analysts have projected an average target price of $74.17 for Trip.com Group Ltd, with predictions ranging from a high of $94.98 to a low of $56.99. This average target implies a promising upside of 17.27% from the last traded price of $63.25. Detailed estimate data is accessible on the Trip.com Group Ltd (TCOM, Financial) Forecast page.
Brokerage Recommendations
The consensus among 29 brokerage firms is notably positive, with an average recommendation rating of 1.9, signifying an "Outperform" status for Trip.com Group Ltd. This rating scale, where a score of 1 equates to a Strong Buy and 5 to a Sell, indicates a favorable outlook from the investment community.
Evaluation of GF Value
Utilizing GuruFocus's proprietary valuation metrics, the estimated GF Value for Trip.com Group Ltd in one year stands at $69.93. This valuation suggests a potential upside of 10.56% above the current stock price of $63.249. This GF Value is derived from historical trading multiples, past business growth, and future performance estimates, providing a robust benchmark for investors. Further insights can be found on the Trip.com Group Ltd (TCOM, Financial) Summary page.
