TripAdvisor stock price target raised to $25 from $24 at Goldman Sachs

Published 08/08/2025, 10:56
TripAdvisor stock price target raised to $25 from $24 at Goldman Sachs

Investing.com - Goldman Sachs raised its price target on TripAdvisor (NASDAQ:TRIP) to $25.00 from $24.00 on Friday, while maintaining a Buy rating following the company’s Q2 2025 earnings report. According to InvestingPro analysis, TripAdvisor appears undervalued, with the stock currently trading at $16.09, showing a 14.7% gain over the past year.

The firm highlighted that while TripAdvisor’s Q2 revenue was in line with expectations, adjusted EBITDA margin exceeded the high end of guidance due to improved marketing efficiencies at Viator, with strong repeat bookings growth on the Viator point-of-sale. The company maintains a healthy financial position with a current ratio of 1.9 and operates with moderate debt levels.

Goldman Sachs noted management’s strategy to coordinate efforts across Experiences brands rather than optimizing individual brand strategies, leveraging group-wide assets across marketing channels, customer traffic, supply relationships, product, data, and technology to drive growth and efficiency. InvestingPro subscribers can access 7 additional key insights about TripAdvisor’s growth potential and financial health metrics in the comprehensive Pro Research Report.

The research firm pointed out that Viator continues to see strong growth from its Merchant channel, which TripAdvisor views as incremental bookings despite lower average order value and take rate, while remaining profitable.

Goldman Sachs also mentioned that TripAdvisor’s Branded Hotels segment returned to growth for the first time since Q1 2023, reflecting a healthy pricing environment that continued into July, driven by product optimizations resulting in higher-value traffic to partners and healthy paid channel volume.

In other recent news, Tripadvisor is facing pressure from Palliser Capital to consider a potential sale due to strategic concerns. The investment firm expressed worries that the core business is negatively affecting performance and shareholder value. Meanwhile, Cantor Fitzgerald raised its price target for Tripadvisor to $17, maintaining an Underweight rating, and anticipates the company’s revenue growth for the second quarter of 2025 to be around 6.6%. BofA Securities initiated coverage with a Neutral rating and a $19 price target, highlighting challenges in Tripadvisor’s hotel price comparison business from competitors like Google (NASDAQ:GOOGL).

Additionally, BTIG maintained its Buy rating with a $20 price target, noting interest from activist investors in unlocking hidden value in the company. DA Davidson also reiterated a Neutral rating with a $16.25 price target after Starboard Value disclosed a 9% stake in Tripadvisor. The firm included Tripadvisor in its STAMPEDE list under the "A for Activist" category following this development. These recent developments reflect the varied perspectives from investment firms regarding Tripadvisor’s strategic direction and financial outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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