Tripadvisor upgraded to Buy as activist engagement accelerates: BofA

Investing.com -- Bank of America upgraded Tripadvisor from Neutral to Buy in a note on Friday, citing a clearer path to value realization driven by activist engagement and rising strategic optionality, analyst Nafeesa Gupta said.

The firm raised its price target for the stock to $15 from $14 per share.

BofA highlighted Starboard Value’s growing involvement, noting the activist has held a 9 percent stake since July 2025 and “raises the likelihood that TRIP evaluates transactions across its portfolio at a time when the market…is undervaluing its faster‑growing segments.”

The bank’s sum-of-the-parts analysis values Viator and TheFork together at more than $2.5 billion, almost double Tripadvisor’s current enterprise value of about $1.3 billion.

Gupta highlighted recent board changes to support strategic momentum. Tripadvisor formalized a cooperation agreement with Starboard, adding four new directors.

BofA noted this follows Starboard’s February 2026 letter urging a board refresh and exploration of potential sales.

BofA estimated Viator’s standalone value between $1.3 billion and $2.5 billion, highlighting its leadership in North American experiences and 300,000-plus bookable tours. TheFork, Tripadvisor’s European restaurant reservation platform, was valued at $372 million to $1.1 billion.

The firm said Tripadvisor’s near-trough 3x 2027 EBITDA multiple for its hotel meta-search segment suggests potential for Viator and TheFork to be valued independently. Gupta added that key risks include “Agentic AI disruption, execution challenges, competitive pressure, and continued Hotels drag,” which could limit the realization of standalone asset value.

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