In a report released yesterday, Jake Fuller from BTIG maintained a Buy rating on TripAdvisor (TRIP – Research Report), with a price target of $20.00.
Jake Fuller’s rating is based on several key factors that highlight TripAdvisor’s potential for growth. One of the primary drivers is the strong performance of Viator, a subsidiary of TripAdvisor, which has shown significant re-acceleration in bookings and margin expansion. This positive trend in Viator’s performance is expected to contribute substantially to TripAdvisor’s overall EBITDA, with projections of reaching approximately $100 million by 2027. The solid gross margin and efficient operational expenses of Viator further bolster confidence in its long-term profitability.
Additionally, the upcoming acquisition of Liberty TripAdvisor is seen as a strategic move that could open up new opportunities for TripAdvisor to explore strategic alternatives. Although there is uncertainty regarding post-acquisition plans, the transaction is anticipated to streamline the company’s capital and control structure. Despite some challenges in the legacy Brand TripAdvisor segment, the overall outlook remains positive, with a valuation that suggests potential upside. Fuller’s price target of $20 reflects a balanced view of these factors, considering both the current market conditions and future growth prospects.
Fuller covers the Consumer Cyclical sector, focusing on stocks such as Expedia, TripAdvisor, and Maplebear. According to TipRanks, Fuller has an average return of 5.5% and a 52.43% success rate on recommended stocks.
In another report released on February 24, Bernstein also reiterated a Buy rating on the stock with a $21.00 price target.