UPDATE: TripAdvisor (TRIP) PT Cut to $44 but Truist Securities Sees Viator Alone Accounting for $18/sh
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Truist Securities analyst Naved Khan lowered the price target on TripAdvisor (NASDAQ: TRIP) to $44.00 (from $57.00) based on a more conservative DCF. No details were offered on the model changes but to dampen the blow, he commented that Viator alone could be worth ~$18/sh or $2.6B.
The analyst reiterated a Buy rating, stating "We expect Viator to reach $2.9B in bookings (+33% Y/Y, 1% market penetration) in 2023, generating ~$520M (+40% Y/Y) in revenue and expect EBITDA to be ~breakeven as the company continues to aggressively invest into S&M to drive bookings and customer acquisition. We estimate Viator's enterprise value at ~$2.6B, which assumes ~5x sales multiple on a business which can deliver robust growth over the NT, with the potential for 25+% FCF margin longer-term.".
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