BTIG analyst Jake Fuller has maintained their neutral stance on TRVG stock, giving a Hold rating on February 4.
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Jake Fuller has given his Hold rating due to a combination of factors that reflect both progress and uncertainty in trivago’s performance. The company has shown a return to year-over-year revenue growth for the first time since early 2023, along with achieving EBITDA profitability, which exceeds prior expectations. However, despite these positive developments, there are concerns about trivago’s ability to rebuild its revenue base and sustain profitability in the long term.
Another reason for the Hold rating is the challenges in the metasearch market, which are exacerbated by shifts in advertising strategies and increased competition from Online Travel Agencies. Trivago’s pivot back to TV advertising and its increased ad spending have yet to demonstrate a clear path to sustained growth. Furthermore, while trivago’s financial position includes a significant amount of cash, the company’s overall market relevance and investor interest remain limited, prompting a cautious outlook.
Fuller covers the Consumer Cyclical sector, focusing on stocks such as Expedia, Booking Holdings, and TripAdvisor. According to TipRanks, Fuller has an average return of 5.3% and a 49.05% success rate on recommended stocks.
In another report released on February 4, UBS also maintained a Hold rating on the stock with a $2.75 price target.