Morgan Stanley Lifts Trip.com Group Limited (TCOM) Target on Currency Outlook

On Tuesday, Morgan Stanley analysts maintained an Overweight rating on Trip.com Group Limited (NASDAQ:TCOM), while raising the price target for the stock to $78, from $73. With a healthy gross profit margin of 81%, the company is offering not only growth but also value.

The analysts’ revision came as a consequence of some shifts in the broader exchange forecasts. In light of the USD depreciation against RMB, analysts now expect the exchange rate to be 7.15 RMB per US dollar instead of the previous 7.5 RMB per US dollar.

Trip.com Group Limited (TCOM): Among Billionaire Lei Zhang’s Stock Picks with Huge Upside Potential

A customer in a travel agents office, highlighting the convenience of the companies corporate travel solutions.

The price surge has been associated with the exchange rate differences, solely with no changes in key assumptions or estimates whatsoever. The analysts have also adjusted their bull and bear case values, as the bull case value rose by $6, from $85 to $91, and the bear case value witnessed a surge of $2, from $45 to $47.

Trip.com Group Limited (NASDAQ:TCOM), serving as a global online travel agent, provides hotel reservations, travel bookings, corporate travel management solutions, and package tours via its mobile application, website, and customer service centers. With a presence across China and the globe, the travel giant aims to make every trip the perfect trip for its wide clientele, covering both leisure and business travelers.

While we acknowledge the potential of TCOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TCOM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure. None.