RBC Capital Upgrades TripAdvisor (TRIP) to Outperform, $95 PT

February 12, 2014 6:23 AM EST Send to a Friend
Get Alerts TRIP Hot Sheet
Price: $86.31 -1.22%

Rating Summary:
    12 Buy, 20 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 27 | Down: 26 | New: 17
Trade TRIP Now!
Join SI Premium – FREE
RBC Capital analyst Mark Mahaney upgraded TripAdvisor (NASDAQ: TRIP) from Sector Perform to Outperform with a price target of $95.00 (from $68.00) amid positive Q4 results, a robust ’14 outlook, and the removal of the "Meta Overhang."

Positives and negatives highlighted by Mahaney, included: Positives: 1) Revenue Growth Acceleration – for Display Advertising (46% Y/Y growth), Click-Based Advertising (17% growth), and Total (26%). 2) Meta Transition Finally Revenue Neutral – approximately a year after launch, with higher bid rates finally offsetting reduction in overall leads—this is a good/sustainable thing - a better user experience creates higher quality leads, which attracts more Ad $’s. 3) Both North America & EMEA Revenue Growth Accelerated – likely a positive read-through for PCLN. 4) Increasing Revenue Diversification – with Business Listings & Vacation Rentals now 17% of total revenue and growing 50% Y/Y. Negative: Hotel Shopper Growth Decelerated – to 25% Y/Y growth, but the comp was the year’s toughest, Mobile App usage is not fully counted in this metric, and 25% is still an intrinsically high growth rate."

The firm raised 2014 Revenue/EBITDA by 4% to $1.18B/$472MM.

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 $84.20 yesterday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Hot Upgrades, Upgrades

Related Entities

RBC Capital

Add Your Comment