BTIG Downgrades TripAdvisor (TRIP) to Neutral, 'Wrong Side of AI'
BTIG analyst Jake Fuller downgraded TripAdvisor (NASDAQ: TRIP) from Buy to Neutral.
The analyst comments "We downgrade TRIP from Buy to Neutral given AI exposure, estimate risk & no clear path to a further strategic value unlock. Highlights: 1. We see TRIP on the wrong side of the AI theme given top-of-funnel positioning where pressure is building (zero-click search hitting SEO) & likely to accelerate as the large platforms gain traction in the travel planning process, 2. #s have consistently trended lower & we take 2H estimates below-Street w/data checks pointing to ongoing traffic pressure at brand Tripadvisor & mixed reads for Viator, 3. Although inexpensive at 5.5x '26 EBITDA, we don't see a path towards further strategic value unlock for TRIP post the planned sale of TheFork w/a view that Viator is unlikely to be split out."
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Shares of TripAdvisor closed at $14.41 yesterday.