TripAdvisor (TRIP) PT Lowered to $48 at UBS

UBS lowered its price target on TripAdvisor (NASDAQ: TRIP) to $48.00 (from $54.00) while maintaining a Neutral rating.

Analyst Eric J. Sheridan comments "Positives in the qtr: 1) mgmt. commentary that Q4 US revenue per hotel shopperincreased and click-based revs grew double digits after 4 quarters of YoY declines; 2) 500 bps sequential acceleration in hotel shoppers due to improved monetization and marketing spend; 3) commentary around conversions in US Desktop IB increasing by 20% YoY and that increased marketing investment has not diluted conversions trends; 4) decision to repurchase 1.65mm shares for $84mm during Q4 and the announcement of a new share repurchase program for $250m in Jan'17. Negatives in the qtr: 1) updated commentary that 2017 Adj. EBITDA guidance of flat to down does not include the potential for brand marketing investment; 2) Q4'16 Adj. EBITDA came in lower than expectations, driven by increased marketing investments in Hotel segment; 3) display & subscription revenue declined by 3% YoY, indicating another quarter of muted performance."

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