Benchmark Maintains a 'Hold' on TripAdvisor (TRIP); Less Revenue, Higher Profit
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Price: $61.69 -0.6%
Rating Summary:
9 Buy, 15 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
9 Buy, 15 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Benchmark maintains a 'Hold' on TripAdvisor (NASDAQ: TRIP) price target of $39.00.
Analyst, James T. Dobson, said, "TripAdvisor reported 2Q12 results with revenue below expectations but lower marketing expense drove higher profits. TripAdvisor announced a new marketing strategy aimed at improved traffic quality and long-term user growth, which will result in lower revenue growth. Europe was noted as a meaningful drag on growth as well...We project 2012 revenue growth of 19% y/y, down from 21% previously. Our sales and marketing expense is projected at 35% of revenue. For 2012, we estimate $757 million in total revenue with EBITDA of $350 million, up 8%."
"Aggressive search spending by OTAs could be lowering the yield TripAdvisor gets from SEM. Our channels with advertising agencies and SEM firms noted travel as a strong category in 2Q12. Google (Nasdaq: GOOG) also highlighted travel strength on its call."
For an analyst ratings summary and ratings history on TripAdvisor click here. For more ratings news on TripAdvisor click here.
Shares of TripAdvisor closed at $43.47 yesterday, with a 52 week range of $0.00-$47.81.
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Analyst, James T. Dobson, said, "TripAdvisor reported 2Q12 results with revenue below expectations but lower marketing expense drove higher profits. TripAdvisor announced a new marketing strategy aimed at improved traffic quality and long-term user growth, which will result in lower revenue growth. Europe was noted as a meaningful drag on growth as well...We project 2012 revenue growth of 19% y/y, down from 21% previously. Our sales and marketing expense is projected at 35% of revenue. For 2012, we estimate $757 million in total revenue with EBITDA of $350 million, up 8%."
"Aggressive search spending by OTAs could be lowering the yield TripAdvisor gets from SEM. Our channels with advertising agencies and SEM firms noted travel as a strong category in 2Q12. Google (Nasdaq: GOOG) also highlighted travel strength on its call."
For an analyst ratings summary and ratings history on TripAdvisor click here. For more ratings news on TripAdvisor click here.
Shares of TripAdvisor closed at $43.47 yesterday, with a 52 week range of $0.00-$47.81.
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