Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - UBS raised its price target on TripAdvisor (NASDAQ:TRIP) to $19.00 from $18.00 while maintaining a Neutral rating following the company’s recent earnings report. According to InvestingPro data, TripAdvisor’s stock has shown strong momentum with a 32.5% return over the past year and appears undervalued based on comprehensive Fair Value analysis.
The travel platform’s consolidated revenue fell short of consensus by approximately $2 million, primarily due to weakness in its Brand segment. Despite the revenue miss, a nearly 5-percentage-point margin beat from its Viator business drove significant upside to adjusted EBITDA. The company maintains a healthy financial position with a current ratio of 1.24, indicating sufficient liquidity to meet short-term obligations.
For the third quarter of 2025, TripAdvisor expects its Brand revenue to decline between 3% and 4% year-over-year, below consensus expectations for flat performance. The company forecasts high-single-digit growth for Viator against Street expectations of 13%, while TheFork is projected to grow 25%-27% compared to mid-teen market expectations.
Consolidated EBITDA margins are anticipated to be between 19% and 21% for the quarter, below Street estimates of 22%, with Viator and TheFork contributing the majority of the margin performance.
UBS increased its 2026 and 2027 revenue estimates by approximately 2%, while adjusted EBITDA forecasts for those years were raised by 11% and 12% respectively, citing TripAdvisor’s potential to accelerate its demand flywheel by leveraging customer preference signals to drive conversion across its portfolio. With a solid gross profit margin of 62.3% and expected net income growth this year, TripAdvisor shows promising fundamentals. For deeper insights into TripAdvisor’s financial health and growth potential, including 11 additional ProTips, check out the comprehensive research report available on InvestingPro.
In other recent news, TripAdvisor reported its financial results for the second quarter of 2025, showcasing a strong performance by surpassing earnings per share (EPS) expectations. The company achieved an actual EPS of $0.46, beating the forecasted $0.41, which represents a 12.2% positive surprise. However, revenue slightly missed estimates, coming in at $529 million compared to the anticipated $529.61 million. Bernstein SocGen Group has reiterated an Outperform rating on TripAdvisor, maintaining a price target of $20.00, citing the company’s solid financial performance with 7% revenue growth, 10% EBITDA growth, and 17% EPS growth. BMO Capital also maintained its Market Perform rating and $15.00 price target, noting the company’s meaningful progress in accelerating growth rates. These ratings reflect a continued positive outlook from analysts, with Bernstein highlighting the company’s consistent track record of reliable earnings beats. Despite the mixed results, the overall sentiment from analyst firms remains optimistic about TripAdvisor’s future performance.
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