TripAdvisor (TRIP) Stock On Way to $51, Says Analyst
Tweet
Share
E-mailGet Alerts TRIP Hot Sheet
Price: $26.16 +0.04%
Rating Summary:
11 Buy, 29 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
Rating Summary:
11 Buy, 29 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
Join SI Premium – FREE
Shares of TripAdvisor (Nasdaq: TRIP) are higher by 57 percent year-to-date, and analysts at Needham and Company see more upside. In fact, the firm is calling for revenue and earnings well above consensus, in part because of hotel trends away from online travel agenies (OTA).
Needham analysts point out that in 2011, 76 percent of online bookings for independent (i.e., non-branded) hotels came from the OTAs vs 24 percent from the hotels' own websites, according to the HSMAI Foundation.
"OTA commissions are high, typically around 20%," noted analyst Laura Martin. This could help fuel ongoing trends away from OTAs toward TripAdvisor.
Pricing isn't TRIP's only advantage. Additional advantages include size relative to competitors and its perception as independent.
"Customers can get reviews and ratings, and TRIP prides itself on being independent: We believe consumers perceive TRIP as impartial, whereas we believe many of its competitors are perceived as being promotional."
Needham & Company reiterated a Buy rating on TripAdvisor (NASDAQ: TRIP) with a price target of $51.00 (from $38.00).
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 $41.97 yesterday.
Needham analysts point out that in 2011, 76 percent of online bookings for independent (i.e., non-branded) hotels came from the OTAs vs 24 percent from the hotels' own websites, according to the HSMAI Foundation.
"OTA commissions are high, typically around 20%," noted analyst Laura Martin. This could help fuel ongoing trends away from OTAs toward TripAdvisor.
Pricing isn't TRIP's only advantage. Additional advantages include size relative to competitors and its perception as independent.
"Customers can get reviews and ratings, and TRIP prides itself on being independent: We believe consumers perceive TRIP as impartial, whereas we believe many of its competitors are perceived as being promotional."
Needham & Company reiterated a Buy rating on TripAdvisor (NASDAQ: TRIP) with a price target of $51.00 (from $38.00).
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 $41.97 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Opthea Ltd. (OPT) PT Raised to $18 at Oppenheimer
- Keefe, Bruyette & Woods Upgrades Trustmark (TRMK) to Outperform
- Veritex Holdings (VBTX) PT Raised to $26 at Piper Sandler
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT ChangeRelated Entities
Needham & Company, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
