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The shares rose 4% to a new 52-week high and are up 19% so far this year.
The firm raised its rating to Overweight from Neutral, with a $50 price target.
The analysts said the booking site has an opportunity to grab share, citing an easing of competition in the industry and a shift in the traveler mix to individuals from tour groups. “We believe both factors will last for 1-2 years,” they said.
The analysts use data from the Civil Aviation Administration of China that show domestic passenger volume in the second quarter was 5% higher than 2019 levels. For outbound travel, they said, passenger volume recovered to 37% of 2019 levels in the second quarter versus 15% in 1Q23. They added they expect it to recover further in the second half of the year.
As for corporate travel, JPMorgan analysts said Trip.com’s hotel supply chain continued to improve in the past three years despite the pandemic. It “gives Trip.com more selection and better rates (more access to big hotels’ corporate rates). We believe a stronger supply chain will allow Trip.com to gain market share in corporate travel,” they said.
