Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $20.00 price target on TripAdvisor (NASDAQ:TRIP) following the company’s second-quarter results. According to InvestingPro data, the stock has gained over 21% year-to-date, with analysis suggesting the company is currently trading below its Fair Value.
The travel platform demonstrated solid financial performance with 7% revenue growth, 10% EBITDA growth, and 17% EPS growth in the quarter. InvestingPro analysis reveals the company maintains a "GOOD" financial health score, with liquid assets exceeding short-term obligations.
TripAdvisor generated approximately 12% of its market capitalization in free cash flow during the first six months of the year, highlighting the company’s cash generation capabilities despite ongoing strategic shifts.
Bernstein noted the company is moving toward more significant integration between TripAdvisor and Viator platforms, while keeping TheFork separate, a strategic decision that could impact potential future breakup scenarios amid recent activist investor involvement.
The stock rose approximately 5% in pre-market trading despite third-quarter guidance coming in below analyst expectations and lowered projections for Brand TripAdvisor growth turning positive in fiscal year 2026.
In other recent news, Tripadvisor Inc. reported its financial results for the second quarter of 2025, surpassing earnings per share (EPS) expectations. The company achieved an actual EPS of $0.46, exceeding the forecast of $0.41, representing a 12.2% positive surprise. However, revenue slightly missed estimates, coming in at $529 million compared to the anticipated $529.61 million. Despite this, analysts have maintained their ratings on the company’s stock. Bernstein SocGen Group reiterated an Outperform rating with a price target of $20.00, citing Tripadvisor’s consistent track record of earnings beats. Meanwhile, BMO Capital maintained a Market Perform rating with a $15.00 price target, acknowledging the company’s meaningful progress in accelerating growth rates. These developments reflect the ongoing investor interest and analyst confidence in Tripadvisor’s strategic direction and financial performance.
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