J.P. Morgan: Lowers TRIP.COM-S (09961) target price to HK$490, maintains "Overweight" rating.

J.P. Morgan released a research report stating that TRIP.COM-S (09961)'s second-quarter results and third-quarter outlook show that the monetization rate adjustment for the domestic hotel business will be postponed to the fourth quarter and the first quarter of next year, later and larger in magnitude than the bank expected; the bank lowered its target price from HK$560 to HK$490, maintaining an "Overweight" rating. The bank expects the company's earnings to return to normal in 2027, and share buybacks and international business growth will help buffer this transition period, but it respectively lowered its 2026-2027 adjusted earnings per share forecasts by 4% and 13% to reflect the decline in the domestic hotel business monetization rate and weakening domestic transportation commissions during the transition period.