Bank of America analyst Nafeesa Gupta has started coverage on TripAdvisor (TRIP, Financial), assigning it a Neutral rating with a price target set at $19. While the growth potential in online experiences is promising, Gupta points out that the sector faces significant competition, which may pose challenges. Additionally, recent actions by activist investor Starboard Value, which acquired a 9% stake in TRIP, have lifted the stock close to its two-year average. This move is seen as a potential catalyst to unlock additional value for Viator, a key component of TripAdvisor's business.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Tripadvisor Inc (TRIP, Financial) is $17.31 with a high estimate of $24.00 and a low estimate of $11.00. The average target implies an downside of 3.84% from the current price of $18.00. More detailed estimate data can be found on the Tripadvisor Inc (TRIP) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Tripadvisor Inc's (TRIP, Financial) average brokerage recommendation is currently 3.1, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Tripadvisor Inc (TRIP, Financial) in one year is $21.87, suggesting a upside of 21.5% from the current price of $18. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Tripadvisor Inc (TRIP) Summary page.
TRIP Key Business Developments
Release Date: May 07, 2025
- Consolidated Revenue: $398 million, 1% growth or approximately 3% growth in constant currency.
- Consolidated Adjusted EBITDA: $44 million, representing 11% of revenue.
- Viator Revenue: $156 million, 10% growth or approximately 12% in constant currency.
- Viator Adjusted EBITDA: Loss of $18 million, with an 800 basis point margin improvement.
- Brand Tripadvisor Revenue: $219 million, a decline of 8%.
- Brand Tripadvisor Adjusted EBITDA: $65 million, representing 30% of revenue.
- TheFork Revenue: $46 million, 12% growth or 16% growth in constant currency.
- TheFork Adjusted EBITDA: Loss of $3 million, with a 100 basis point margin improvement.
- Gross Booking Value (GBV): $1.1 billion, 10% growth or 12% in constant currency.
- Operating Cash Flow: $102 million.
- Free Cash Flow: $83 million.
- Total Cash and Cash Equivalents: $1.2 billion at quarter end.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tripadvisor Inc (TRIP, Financial) exceeded financial expectations with consolidated revenue of $398 million, representing 1% growth or approximately 3% growth in constant currency.
- Viator and TheFork segments showed strong performance with mid-teens growth rates and improvements in profitability.
- The company successfully closed its merger with Liberty Tripadvisor Holdings, simplifying its capital structure and removing a controlling shareholder.
- Tripadvisor Inc (TRIP) is leveraging AI to enhance customer experience, improve product offerings, and drive engagement and monetization.
- The company is expanding its supply catalog to secondary and tertiary markets, enhancing the breadth and depth of choice for consumers.
Negative Points
- Brand Tripadvisor revenue declined by 8%, with Branded Hotels revenue down by 7%, reflecting volume headwinds.
- The macroeconomic environment is uncertain, which could negatively impact Tripadvisor Inc (TRIP)'s business.
- Experiences and Dining revenue declined by 15%, partly due to a transition to a self-service sales model.
- Average booking value at Viator declined due to a higher mix of third-party bookings, which generally have lower average booking values.
- Tripadvisor Inc (TRIP) is monitoring early signs of pressure in average booking value and cancellation rates, indicating potential challenges ahead.
