Analyst Doug Anmuth from J.P. Morgan maintained a Sell rating on TripAdvisor (TRIP – Research Report) and increased the price target to $13.00 from $11.00.
Doug Anmuth has given his Sell rating due to a combination of factors impacting TripAdvisor’s future prospects. Despite TripAdvisor’s better-than-expected first-quarter results and optimistic second-quarter guidance, the company maintained its full-year outlook due to macroeconomic uncertainties. Anmuth notes that while the company’s revenue and adjusted EBITDA projections for 2025 have been revised upward, they still align with the lower end of TripAdvisor’s guidance.
Additionally, Anmuth expresses concerns about the potential impact of softer consumer spending on TripAdvisor’s travel meta search and experiences segments. He believes that TripAdvisor’s core platform is under-monetized and faces structural challenges, which justifies a valuation discount compared to its online travel peers. Although TripAdvisor’s growth brands, Viator and TheFork, are expanding, they are still in the early stages of profitability, leading to a cautious outlook on the stock.
Anmuth covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Alphabet Class C, and Meta Platforms. According to TipRanks, Anmuth has an average return of 20.1% and a 62.30% success rate on recommended stocks.
In another report released yesterday, Jefferies also maintained a Sell rating on the stock with a $11.00 price target.