TripAdvisor initiated with an Underweight at Cantor Fitzgerald

Cantor Fitzgerald analyst Deepak Mathivanan initiated coverage of TripAdvisor with an Underweight rating and $12 price target. The company’s fundamentals have been eroding for some time, but recent declines in the core segment sales have accelerated its challenges, the analyst tells investors in a research note. The firm says it is unclear if TripAdvisor can sustain growth or expand margins going forward. A go-private or buyout by a financial sponsor “is still possible and probably the most likely end game,” but “timing and price could be far from here,” contends Cantor.