RBC Capital increased the price target on TripAdvisor’s stock to $24 (13.4% upside potential) from $19 and reiterated a Hold rating amid expectations of improving demand post 2Q results.
RBC Capital analyst Shweta Khajuria wrote in a note on Monday that TripAdvisor’s (TRIP) “Q2 results were better than feared amid gradual improvement in demand and material cost savings.” Looking ahead, she noted that, “The worst may be in the past for the company with July revenue decline having moderated, though the transition around the major user interface changes announced in 2013 is taking longer than anticipated.”
On August 6, TripAdvisor reported better-than-expected top-line results for 2Q as revenues of $59 million beat analysts’ expectations of $51.8 million. The company’s monthly unique users also depicted improving demand trends. In April, May, and June, monthly unique users at the online travel research company’s website were 33%, 45%, and 60%, respectively, of the year-ago quarter’s level.