Cantor Fitzgerald Downgrades TripAdvisor (TRIP) to Hold

Cantor Fitzgerald downgraded TripAdvisor (NASDAQ: TRIP) from Buy to Hold with a price target of $94.00 (unchanged). The change follows Q2 results. Analyst Naved Khan thinks growth is already priced in.

"TRIP reported mixed 2Q results, with the top line showing an impressive 800bps sequential improvement to 29% Y/Y. That said, revenue came virtually in-line with consensus, showing that Street expectations already reflect an accelerating revenue growth trajectory for the business. Management also modestly lowered the EBITDA outlook to fund growth initiatives. While the success of "Instant book" feature offers potential for upside, we believe that its P&L impact will likely be limited in the near term until/unless TRIP manages to convince a major OTA to sign-up - something they've resisted so far. While we continue to be fans of the model and view TRIP as an indispensable piece of the travel ecosystem, we opt to move to the sidelines, as we believe that the stock currently reflects reasonable expectations for growth/margin improvement in 2014 and beyond," said Khan.

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 $107.36 yesterday.

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