UPDATE: Guggenheim Downgrades TripAdvisor (TRIP) to Sell

May 16, 2018 6:09 AM EDT
Get Alerts TRIP Hot Sheet
Price: $38.00 --0%

Rating Summary:
    10 Buy, 29 Hold, 7 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 12 | Down: 10 | New: 15
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(Updated - May 16, 2018 6:20 AM EDT)

(updated to add analyst comment)

Guggenheim downgraded TripAdvisor (NASDAQ: TRIP) from Neutral to Sell with a price target of $40.00.

Analyst Jake Fuller cites three key themes for the downgrade:

  1. OTAs are tilting from room nights to margin, which has undermined meta channel growth and may not be done;
  2. With TRIP cutting ad spend, competitors spending more, and GOOGL (NC, $1,084.87) ramping, we see a tough competitive backdrop;
  3. Shares have rallied post print (+25% since 5/8 vs. S&P 500 +1%) and we see valuation as aggressive for a company with no record of growth and facing competitive pressure and potential estimate risk if OTA rationalization efforts continue.

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 $48.37 yesterday.

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