Morgan Stanley Cuts Trip.com ADR Target Price To $52

Morgan Stanley said short-term uncertainty for Trip.com is rising amid weak domestic consumption, high oil prices and a restructuring of hotel commission systems, according to ETNet. The bank cut its ADR target price to $52 from $57 and kept an Overweight rating. It also lowered its 2026-2028 revenue forecasts by 1% to 3% and earnings per share estimates by 2% to 7%. Morgan Stanley said summer travel demand in China and for outbound trips was soft because of extreme weather in July, macroeconomic pressure and geopolitical risks. It said the next point to watch is the National Day holiday, when travel demand deferred by the summer weather could outperform expectations, while oil prices and the macro backdrop remain downside risks.