Trip.com Group Ltd (NASDAQ:TCOM) shares are down on Tuesday, after the company reported on Monday its first-quarter earnings.
The announcement came amid an exciting earnings season. Here are some key analyst takeaways.
Analyst Kevin Kopelman maintained a Buy rating, while raising the price target from $67 to $73.
Although Trip.com reported 16% revenue growth, this marked a slowdown from the previous quarter's 23%, Kopelman said. The company continued to gain share in the domestic market, while achieving fast growth in international, he added.
Trip.com has continued to increase its advertising spend to push its international business, especially in Asia, the analyst stated. "Guide looks conservative, but visibility is also low," he further wrote.
Check out other analyst stock ratings.
Analyst Fawne Jiang reiterated a Buy rating and price target of $80.
Trip.com reported solid quarterly results, with revenue growth of 16% year-on-year and better-than-expected profitability, Jiang said in a note. The company reiterated its second-quarter and full-year guidance, "targeting mid-teens growth, with international travel continuing to outperform as a core driver," he added.
Although Trip.com is using aggressive marketing to accelerate its global expansion, it still managed to exceed margin expectations, the analyst stated." AI integration is expected to further enhance user engagement and operational efficiency, improving both experience and scalability," he further wrote.
TCOM Price Action: Shares of Trip.com had declined by 6.29% to $62.88 at the time of publication on Tuesday.
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