TripAdvisor (TRIP) has received a new Hold rating, initiated by Bank of America Securities analyst, Nafeesa Gupta.
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Nafeesa Gupta’s rating is based on several factors impacting TripAdvisor’s current market position and future growth prospects. The company is facing significant challenges in its core hotel price comparison business due to competition from Google and other online travel agencies. In response, TripAdvisor is focusing on expanding its Viator and TheFork platforms, which, while promising, have lower margins compared to the core business, affecting overall profitability.
Despite the potential for growth in the online experiences market, intense competition from companies like Airbnb and Booking.com poses a risk to Viator’s market share and profitability. Additionally, while activist investor Starboard Value’s stake in TripAdvisor has boosted the stock’s valuation, it remains below its long-term average. The expectation of margin improvements in 2026 could positively impact the stock’s valuation, but current margin pressures suggest that investors may wait for further cost management measures. Therefore, Gupta has issued a Hold rating, reflecting a cautious outlook amid these mixed factors.
According to TipRanks, Gupta is ranked #7442 out of 9820 analysts.
In another report released on July 8, D.A. Davidson also maintained a Hold rating on the stock with a $16.25 price target.