Goldman Sachs: Gives a "buy" rating to TRIP.COM-S (09961) with a target price raised to HK$588.

Goldman Sachs has released a research report stating that it has given TRIP.COM-S (09961) a "buy" rating, with an estimated non-GAAP operating profit of 2.9 billion yuan in the fourth quarter of this year, an 8% year-on-year increase, and an EBIT profit margin of 23.2%. The bank has adjusted its non-GAAP earnings forecast for the group for 2024-2026 by 0-1%, raising the target price from HKD 517 to HKD 588. The report mentioned that Ctrip's performance is robust and once again exceeds expectations. Profits increased by 22% year-on-year to 6 billion yuan, surpassing market expectations of 5 billion yuan. Compared to the previous quarter, this was driven by improved profit margins and further enhancements in marketing efficiency. Group revenue also exceeded the bank's expectations by 1%, growing by 16% year-on-year, at the high end of the company's guidance of 11-16%, mainly driven by strong outbound tourism momentum and growth on the Trip.com platform.