Trivago upgraded to Buy from Neutral at B. Riley

B. Riley upgraded Trivago (TRVG) to Buy from Neutral with a price target of $5.50, up from $4. The firm’s positive view on the stock reflects the successful turnaround of the business, which it believes is demonstrated by better than expected results, raised outlook, and management’s commentary. Trivago’s strategy to focus on brand marketing investments to drive user growth and optimize downstream conversions “creates a differentiated value proposition for advertising partners,” the analyst tells investors in a research note. Riley expects it to result in sustained “healthy” growth and profitability as the company scales its ad spend further.