TripAdvisor (TRIP – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Richard Clarke from Bernstein maintained a Buy rating on the stock and has a $21.00 price target.
Richard Clarke has given his Buy rating due to a combination of factors that highlight TripAdvisor’s potential for growth despite challenging market conditions. Clarke notes that while many of TripAdvisor’s peers have been reducing their financial guidance, TripAdvisor has maintained its EBITDA outlook, which is a positive sign. Additionally, the company has consistently surpassed EBITDA expectations for seven consecutive quarters, suggesting a strong operational performance.
Clarke also points out that the recent removal of the Liberty overhang could lead to a more consistent return of excess cash, which is beneficial for shareholders. Furthermore, the stock is trading at a relatively low valuation of 4x EBITDA, indicating potential undervaluation. Despite some ongoing challenges, such as declining revenues for Brand TripAdvisor, Clarke expects improvements in the latter part of the year, with significant growth anticipated for Viator and TheFork. These factors contribute to a projected 16% EBITDA growth by FY26, supporting Clarke’s optimistic outlook for the stock.