0703 GMT - Trip.com's margins could narrow in 2025 amid an aggressive expansion, CGS International analyst Lei Yang says in a research note. The analyst forecasts Trip.com's 2025 non-GAAP operating margin to narrow by 2.4 percentage point to 27.8% as the company plans to expand its international platform in Asia. The brokerage projects the online travel-booking platform's 2025 revenue to grow 15%, supported by its domestic, outbound travel and international businesses, the analyst notes. CGS International reiterates its add rating on Trip.com, saying the company should continue to benefit from strong travel demand and improved efficiency with wider use of AI tools. However, the brokerage trims its H-share target price to HK$604.00 from HK$638.00 due to likely weaker operating margins. Shares are last at HK$476.60. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 26, 2025 02:03 ET (07:03 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.