In a report released today, Jake Fuller from BTIG maintained a Buy rating on TripAdvisor, with a price target of $20.00.
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Jake Fuller’s rating is based on a combination of factors including the recent 13D filing indicating an activist investor’s 9% stake in TripAdvisor, which suggests potential undervaluation of the company’s shares. This development opens up possibilities for strategic changes, such as revisiting strategic alternatives now that the control and capital structure have been simplified following the consolidation of Liberty Trip.
Furthermore, Fuller sees potential in unlocking the hidden value of TripAdvisor’s emerging assets like Viator and TheFork, which currently do not seem to be fully recognized in the company’s valuation. Additionally, TripAdvisor’s healthy balance sheet and positive free cash flow position it well for a potential capital return strategy. Operationally, there are opportunities to enhance growth through AI-driven trip planning, expanding membership efforts, and improving on-platform bookings. These factors collectively contribute to Fuller’s optimistic outlook on TripAdvisor’s stock.
In another report released on June 18, Bernstein also maintained a Buy rating on the stock with a $20.00 price target.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TRIP in relation to earlier this year.