Bank of America Securities reiterated its "buy" rating on TRIP.COM-S(09961) and raised its target price to 526 Hong Kong dollars.

Bank of America Securities released a research report stating that it reiterates a "buy" rating for TRIP.COM-S (09961), based on raising the non-GAAP net profit forecast for Ctrip's 2024 and 2025 fiscal years by 20% and 30% respectively, raising the target price from HK$440 to HK$526. The bank expects Ctrip's profit compound annual growth rate for fiscal years 2024 to 2026 to be 12%. The bank expects that Ctrip Group's total revenue in the third quarter of this year will be RMB 15.6 billion, up 14% year-on-year and 22% sequentially, mainly due to strong domestic and outbound demand during summer and peak travel periods, in line with market expectations. Bank of America Securities predicts that Ctrip's accommodation and transportation revenue in the third quarter will increase by 23% and 3% year-on-year, respectively; non-GAAP operating costs are expected to be RMB 5.1 billion; non-GAAP net profit is expected to be RMB 4.8 billion. As for the fourth quarter, the bank expects Ctrip's revenue to accelerate by 17% year-on-year; however, the non-GAAP net profit margin is expected to remain at 26%, unchanged from last year.