Goldman Sachs China Stocks: 10 Stocks to Buy

4. Trip.com Group Limited (NASDAQ:TCOM)

Number of Hedge Fund Holders: 46

Goldman Sachs Equity Stake: $93.55 Million

Trip.com Group Limited (NASDAQ:TCOM) is one of Goldman Sachs’ top Chinese stock picks. On June 17, Jefferies reiterated a ‘Buy’ rating on the stock and an $80 price target. The bullish stance is in response to the company announcing a share repurchase agreement with MakeMyTrip.

Under the terms of the agreement, Trip.com is to sell a portion of Class B ordinary shares back to MakeMyTrip for cancellation. According to Jefferies, the transaction will result in Trip.com’s holdings in MakeMyTrip decreasing to about 20% on the deal’s completion. Following the transaction, Trip.com will become MakeMyTrip’s largest minority shareholder.

Jefferies expects the company to use net proceeds from the transaction to finance overseas operations and meet debt obligations. Part of the funds should also fund share buybacks. The research firm also expects the transaction to allow Trip.com to monetize investment value while optimizing its portfolio and enhancing shareholder value.

Trip.com Group Limited (NASDAQ:TCOM) is a travel service provider that offers a wide range of travel products and services. It provides a “one-stop” travel service, connecting travelers to the world and each other through its platform.