Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - CFRA raised its price target on TripAdvisor (NASDAQ:TRIP) to $13.00 from $12.00 on Monday, while maintaining a Strong Sell rating on the stock. According to InvestingPro data, TripAdvisor’s stock has shown strong momentum, gaining over 32% in the past year, though it currently trades at a relatively high P/E ratio of 37.2x.
The price target increase reflects CFRA’s revised earnings outlook, with the firm now projecting $1.22 earnings per share for 2025, up from $1.21, and $1.31 for 2026, increased from $1.24 previously.
CFRA based its more positive earnings estimates on stronger-than-expected margin expansion at TripAdvisor’s growth segments, with Viator showing a 780 basis point year-over-year improvement and TheFork delivering a 960 basis point gain.
Despite these improvements, CFRA expressed concern about "significant margin deterioration" at the company’s legacy Brand TripAdvisor segment, citing structural monetization challenges and intensifying competition from larger platforms.
The research firm noted that while management indicated further margin expansion for Viator and TheFork in the third quarter, TripAdvisor maintained its full-year guidance, suggesting continued drag from the Brand TripAdvisor segment or that growth segments may be approaching peak profitability.
In other recent news, TripAdvisor reported its financial results for the second quarter of 2025, surpassing earnings per share (EPS) expectations with an actual EPS of $0.46, which was higher than the forecast of $0.41. However, the company experienced a slight revenue miss, reporting $529 million compared to the anticipated $529.61 million. Despite this, TripAdvisor’s Viator business achieved a nearly 5-percentage-point margin beat, contributing to a significant upside in adjusted EBITDA. UBS responded by raising its price target for TripAdvisor to $19 from $18, maintaining a Neutral rating. Meanwhile, Bernstein SocGen Group reiterated its Outperform rating with a $20 price target, citing solid financial performance, including 7% revenue growth, 10% EBITDA growth, and 17% EPS growth. BMO Capital also maintained its Market Perform rating and a $15 price target, acknowledging the company’s meaningful progress in accelerating growth rates. These developments reflect a mixed but generally positive outlook for TripAdvisor among analysts.
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