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Monday - Mizuho (NYSE:MFG) Securities has adjusted its outlook on TripAdvisor stock (NASDAQ:TRIP), increasing the price target from $17.00 to $20.00, while retaining a Neutral rating on the shares. Currently trading at $15.11, with a P/E ratio of 57.5x, the stock has seen a challenging period, declining 15% in the past week. The adjustment comes as the travel platform exhibits sustainable signs of improvement, particularly in its Viator, experiences, and restaurant reservation businesses. According to InvestingPro analysis, TripAdvisor maintains strong financial health with more cash than debt on its balance sheet.
The firm’s analyst highlighted TripAdvisor’s ability to maintain double-digit growth in Viator, its tour and activities subsidiary, despite ongoing challenges in the hotel meta search segment. This growth, alongside successful operations in other areas, has bolstered the company’s margins and helped to counterbalance the tougher comparisons faced by the hotel meta search business in the first half of 2025. The company maintains a healthy gross profit margin of 61.4% and a solid current ratio of 2.1, indicating strong operational efficiency. For deeper insights into TripAdvisor’s financial metrics and growth potential, investors can access comprehensive analysis through InvestingPro, which offers exclusive ProTips and detailed financial health scores.
TripAdvisor’s overall performance has instilled greater confidence in Mizuho’s forecast for the company’s financial year 2026 EBITDA, which is estimated to reach $386 million. The raised price target reflects a 7x multiple of the projected FY26 EBITDA, a step up from the previous 6x multiple. This valuation remains at the lower end of the historical range, acknowledging the ongoing transitions within TripAdvisor’s business operations.
Mizuho continues to consider TripAdvisor a turnaround story, acknowledging the potential for the company to enhance the monetization of its substantial audience base. The revised price target is indicative of the firm’s recognition of TripAdvisor’s recent positive developments and the expectation of continued progress in the company’s strategic initiatives.
In other recent news, TripAdvisor’s financial performance and strategic outlook have been a focal point for analysts. The company reported a fourth-quarter revenue increase of 5% year-over-year to $411 million, surpassing expectations. Adjusted EBITDA reached $73 million, with a 17.8% margin, exceeding forecasts by 35% and 26%. Despite these positive results, TripAdvisor’s first-quarter outlook remains cautious, with projections for flat or slightly declining revenue and EBITDA margins between 5-7%. Analysts from Cantor Fitzgerald and JPMorgan have adjusted their price targets, with Cantor lowering it to $13 and JPMorgan raising it to $15, both maintaining an Underweight rating.
Mizuho Securities and BMO Capital Markets have also revised their price targets, with Mizuho increasing it to $20 and BMO to $18, citing growth in the Viator segment. Viator’s performance continues to show double-digit expansion, contributing to a positive outlook for TripAdvisor’s future earnings. Bernstein maintains an Outperform rating with a $21 target, highlighting the potential stabilization of Brand TripAdvisor and strategic opportunities without a controlling shareholder. The company anticipates modest revenue growth of 5-7% for fiscal year 2025, with a focus on enhancing its Viator and restaurant reservation ventures to bolster margins. As TripAdvisor navigates its transition, analysts remain divided on the stock’s trajectory, reflecting a mix of cautious optimism and concerns over long-term challenges.
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