Cantor Fitzgerald maintains TripAdvisor stock at underweight, $11 target

On Thursday, Cantor Fitzgerald analyst Deepak Mathivanan maintained an Underweight rating on TripAdvisor (NASDAQ:TRIP) stock, with a steady price target of $11.00. According to InvestingPro data, the stock is currently trading at a relatively high P/E multiple of 34.4x, despite generating $149M in EBITDA over the last twelve months. Mathivanan’s assessment followed TripAdvisor’s first-quarter earnings report, which showed revenue slightly exceeding expectations by 1% but EBITDA falling short by 6%, according to consensus data from Visible Alpha. TripAdvisor’s Brand segment and Viator experienced a slowdown, with revenues declining by 2 percentage points and 6 percentage points year-over-year, resulting in -9% and +10% respectively. Conversely, the company’s Fork segment exhibited robust growth.

TripAdvisor has offered guidance for the second quarter, projecting revenue growth of 7% year-over-year and an EBITDA margin of 17% at the midpoint. These figures compare to previous market estimates of 5% revenue growth and an 18% EBITDA margin. For the full fiscal year, TripAdvisor is still expecting revenue growth in the range of 5-7%, despite acknowledging increasing macroeconomic uncertainties. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 2.1, indicating ample liquidity to meet short-term obligations.

The company recently completed the merger with LTRIP and retired 17% of its shares outstanding, a move intended to grant TripAdvisor greater independence and flexibility regarding corporate actions. Despite facing challenges in top-line trends, TripAdvisor is actively managing its costs to mitigate margin pressures arising from growth investments. Want deeper insights? InvestingPro subscribers have access to 10 additional ProTips and comprehensive financial analysis for TripAdvisor, including detailed valuation metrics and growth forecasts.

Mathivanan noted adjustments to the company’s long-term projections, stating, "We have revised our FY26E EBITDA higher by 7% for better margin trends." This revision reflects an expectation of improved efficiency in TripAdvisor’s cost management strategies moving forward. The company’s current market capitalization stands at $1.72 billion, with net income expected to grow this year according to InvestingPro analysis.

In other recent news, TripAdvisor reported a robust first quarter for 2025, surpassing earnings expectations with an EPS of $0.14, significantly higher than the projected $0.04. The company’s revenue reached $398 million, slightly above the anticipated $388.65 million, marking a modest year-over-year growth of 1%. Notably, the Viator segment demonstrated strong performance with a 10% revenue increase. Meanwhile, Jefferies analyst John Colantuoni raised TripAdvisor’s price target from $10 to $11, maintaining an Underperform rating, highlighting ongoing challenges such as margin pressure from increased marketing expenses and macroeconomic uncertainties. TripAdvisor also completed a merger with Liberty TripAdvisor Holdings (OTC:LTRPA), simplifying its capital structure and eliminating a controlling shareholder. The company continues to focus on AI-driven innovations and strategic partnerships to enhance its offerings and maintain competitiveness in the dynamic travel market.

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