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M Stanley Cuts TRIP.COM-S (TOCM.US) TP to USD60, Rating Overweight
2026-06-26 16:53:57 Morgan Stanley issued a research report stating that TRIP.COM-S (09961.HK) lowered its 2Q26 guidance. However, as the results were announced relatively late and market data had already been widely known, the broker believes this is backward-looking. The bank noted that two of the three key risk factors - regulation and oil prices - are set to improve, making the current risk-reward profile attractive. The broker said TRIP.COM-S癒礎s 1Q26 operations slightly exceeded expectations, with revenue rising 17% YoY to RMB16.2 billion, 2% above its forecast. Non-GAAP operating profit increased 15% YoY to RMB4.6 billion, 4% higher than its estimate, reflecting solid execution. The bank expects revenue growth to slow significantly in 2Q26 due to three negative factors, including weak domestic macroeconomic conditions, geopolitical risks and high oil prices, as well as regulatory impacts (including adjustments to the train ticketing system and voluntary changes after communication with regulators). Despite tighter operating expense controls, profit may still decline in 2Q26. The broker forecasts Non-GAAP operating profit to drop 8% to 9% in 2Q26, followed by a rebound in 2H26. It believes the final outcome of the antitrust regulatory review is approaching (potentially within weeks based on past regulatory practice), while oil prices have stabilized amid US-Iran negotiations. Morgan Stanley said that in light of a weaker demand outlook, it lowered its 2026-2028 revenue forecasts by 3% to 7% and cut its Non-GAAP operating profit forecasts by 7% to 8%. The US share TP for TRIP.COM-S (TOCM.US) was reduced from USD70 to USD60, with the Overweight rating reiterated. (ad/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |