Trip.com (09961.HK)(TCOM.US) will announce last year's final quarterly results at the end of February. Citigroup issued a research report predicting that Trip.com's final quarterly performance will generally meet expectations, with adjusted earnings slightly exceeding market expectations. As the year-on-year decline in average daily hotel prices in the Industry narrowed as expected in last year's fourth quarter, the bank anticipates that domestic revenue year-on-year growth will remain in the low double digits, while outbound tourism and Trip.com's considerable momentum are expected to continue. Although the non-GAAP operating profit margin for the fourth quarter of 2024 is expected to be constrained at 21.5%, the possibility of Trip.com achieving better returns on marketing expenditure cannot be ruled out.

Regarding 2025, the bank believes that the growth momentum in the domestic, outbound, and international markets is strong, especially in the first quarter of 2025, due to a lower comparable base for outbound tourism, coupled with a longer Lunar New Year holiday extended by the weekend and annual leave. Therefore, the bank will pay attention to potential positive comments on its performance in the first quarter of 2025 during the upcoming results period and will initiate a 90-day observation for positive catalysts.

The bank has raised Trip.com's earnings forecast for 2025 and 2026 by 1% and 1% respectively to reflect the latest trends in the hotel Industry and has increased Trip.com's U.S. stock Target Price from $73 to $78, maintaining a "Buy" rating.