Nomura Securities Maintains a 'Neutral' on TripAdvisor (TRIP); Q4 Review
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Price: $10.74 -2.1%
Rating Summary:
9 Buy, 31 Hold, 9 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 31 Hold, 9 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on TripAdvisor (NASDAQ: TRIP) price target of $27.50.
Analyst, Brian Nowak, said, "TripAdvisor reported 4Q:11 adjusted EBITDA of $55m, 15% (or $10m) below our estimate and 4.5% below the Street. Lower margins drove the miss as revenue came in 2% higher than us and the Street. At its pre-spin analyst day, TRIP guided to adjusted EBITDA margins of 42-47%. That said, the company’s new 2012 guidance implies they will likely come in at the low end of the range (implied ~42.5-44.5%). TRIP attributed this to the revenue headwinds, investment spending in new regions and mobile, as well as more aggressive search keyword bidding on lower-margin keywords in mature markets. We continue to be wary of margin pressure from TRIP’s investment spending and its need to spend on search at Google, and we model a 42.6% margin in 2012. Flowing through the guidance for higher 2012 revenue, we are raising our 2012 revenue and EBITDA estimate by 2%. Our 2012/13 EPS estimates go to $1.23/$1.49 from $1.30/$1.56."
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 $34.34 yesterday.
Analyst, Brian Nowak, said, "TripAdvisor reported 4Q:11 adjusted EBITDA of $55m, 15% (or $10m) below our estimate and 4.5% below the Street. Lower margins drove the miss as revenue came in 2% higher than us and the Street. At its pre-spin analyst day, TRIP guided to adjusted EBITDA margins of 42-47%. That said, the company’s new 2012 guidance implies they will likely come in at the low end of the range (implied ~42.5-44.5%). TRIP attributed this to the revenue headwinds, investment spending in new regions and mobile, as well as more aggressive search keyword bidding on lower-margin keywords in mature markets. We continue to be wary of margin pressure from TRIP’s investment spending and its need to spend on search at Google, and we model a 42.6% margin in 2012. Flowing through the guidance for higher 2012 revenue, we are raising our 2012 revenue and EBITDA estimate by 2%. Our 2012/13 EPS estimates go to $1.23/$1.49 from $1.30/$1.56."
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 $34.34 yesterday.
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