TripAdvisor (TRIP) PT Lowered to $54 at Jefferies on Soft 2H Recovery
Jefferies analyst Brian Fitzgerald maintains Hold rating, but lowers price target on TripAdvisor Inc. (NASDAQ: TRIP) to $54 (from $59), suggesting the second half recovery was weak, as the company reported 2016 fourth quarter revenue and operating EPS below consensus estimates.
Fitzgerald comments, "TripAdvisor reported another miss qtr as 2H recovery was softer than expected. The impact of IB on rev per hotel shopper (improving but still down 7% Y/Y) continues to put pressure on Hotel segment direct mktg spend and competitors keep outspending TRIP in paid mktg channels. To counter that, going into 2017 mgmt plans to materially increase performance mktg spend to trade some profitability for top line growth… TripAdvisor reported Q4 results well below expectations with total rev up 2% Y/Y (+4% ex-FX) to $316MM, below Street's $327MM. Adj EBITDA came in at $58MM, below Street's $77MM, while Operating EPS of $0.16 missed cons by $0.14. Hotel revenue declined 3% Y/Y to $252MM while Non-Hotel revenue increased 31% Y/Y to $64MM."
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Shares of TripAdvisor closed at $46.92 yesterday.