Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Mizuho initiated coverage on trivago N.V. (NASDAQ:TRVG) with a Neutral rating and a price target of $3.50 on Monday. The stock, currently trading at $3.38 with a market cap of $243 million, has shown remarkable strength with a 58% gain year-to-date.
The research firm cited a balanced risk/reward profile for the travel comparison platform at current levels, despite potential upside from trivago’s strategic pivot toward direct bookings and brand-led marketing. According to InvestingPro analysis, the company maintains strong fundamentals with a healthy current ratio of 2.88 and an impressive gross profit margin of 97.8%.
Mizuho expressed caution regarding "the magnitude of the product change, ongoing competitive pressures including from AI search and Google, and challenges getting comfort in sustainability of growth with margin."
The firm projects a 10% revenue compound annual growth rate (CAGR) for 2024-2027, below the consensus estimate of 11%, while forecasting sales and marketing costs CAGR at 10% for the same period, approximately 70 basis points above consensus.
These projections lead to Mizuho’s adjusted EBITDA estimate of €19 million for fiscal year 2027, which falls €6 million below the consensus estimate of €25 million.
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