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

February 12, 2014 6:23 AM EST
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Price: $51.85 --0%

Rating Summary:
    2 Buy, 34 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 7 | Down: 9 | New: 1
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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.

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