Morgan Stanley lowered its revenue forecasts for TONGCHENGTRAVEL by 4% to 6% due to the negative impact of rising air ticket prices on demand. Consequently, it adjusted its non-GAAP EPS forecasts for 2026 to 2028 downwards by 3.4% to 7.4%. Despite this, the bank maintains an Overweight rating, expecting the company's revenue to grow approximately 8% YoY and adjusted net profit to increase 12% YoY, driven by improved operating efficiency. The target price was reduced from HKD29 to HKD27, reflecting revisions to earnings forecasts.
