Mizuho raises Trivago stock target to $3.50, affirms Outperform

Published 06/02/2025, 16:14
Mizuho raises Trivago stock target to $3.50, affirms Outperform

On Thursday, Mizuho (NYSE:MFG) Securities demonstrated confidence in trivago N.V. (NASDAQ:TRVG) by increasing the price target from the previous $2.50 to a new level of $3.50, while reiterating an Outperform rating on the stock. The adjustment follows trivago’s report of strong financial results, which included a return to revenue growth and EBITDA that exceeded market expectations significantly. The stock is currently trading near its 52-week high of $3.29, with InvestingPro analysis suggesting the company is slightly undervalued based on its Fair Value model.

The company’s management credited the positive performance to better traffic quality and an improved user experience, which helped to counterbalance weaker performance marketing outcomes. As the company moves into the year, there has been a notable acceleration in growth rates, with January seeing double-digit increases across all regions. This momentum is reflected in the stock’s impressive 45.41% return over the past six months. InvestingPro subscribers can access 8 additional key insights about trivago’s growth potential and financial health metrics.

Despite this momentum, trivago’s management plans to continue strategic investments aimed at long-term growth, and has decided to uphold its financial outlook for FY25. In light of these developments, Mizuho has also revised its forecast for trivago’s FY26 EBITDA, increasing the estimate from €30 million to €37 million.

The new price target represents a valuation of 3 times the estimated FY26 EBITDA, up from the prior 2 times valuation. This adjustment is based on the midpoint of the historical valuation range and reflects the firm’s improved fundamentals. Mizuho’s analysts anticipate that these positive trends will support the company’s growth trajectory moving forward.

In other recent news, Travala, a crypto-native travel booking service, has integrated with Trivago, a global hotel and accommodation search platform. This collaboration enables Trivago’s users to access Travala’s inventory of over 2.2 million properties in 230 countries and make bookings using a variety of cryptocurrencies. The integration is part of Travala’s ongoing efforts to promote cryptocurrency adoption in the travel industry and follows its previous integrations with travel search engines Skyscanner and KAYAK. Travala reported that its year-over-year revenue had nearly doubled to $100 million, with 78% of its bookings in 2024 paid for using cryptocurrency.

On the other hand, Trivago recently experienced a 7% year-over-year decline in total revenues, amounting to EUR 146.1 million, with a significant 14% decrease in the Americas. Despite this, the company anticipates top-line growth in Q4 and is optimistic about achieving breakeven adjusted EBITDA for the year. Trivago’s strategic initiatives include enhancing the hotel search experience and expanding AI-powered hotel highlights. These recent developments highlight the companies’ efforts to adapt and innovate in the evolving travel industry.

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