TripAdvisor named a best idea for 2024 at Bernstein

Bernstein analyst Richard Clarke named TripAdvisor a best idea for 2024 with an Outperform rating and $28 price target. The “clearest bull case” on Tripadvisor is a sum-of-the-parts argument as Viator’s peer, GetYourGuide, recently raised money at a $2B valuation, the analsyt tells investors in a research note. At that valuation, Tripadvisor excluding Viator would be trading “remarkably” at $1 per active user versus Yelp at $30 per active user, the analyst tells investors in a research note. While the realization of Viator’s value does not seem imminent, Tripadvisor will outperform on the fundamentals alone, contends the firm. Bernstein says the stabilization of the core Tripadvisor business alongside the steady shift to profitability of Viator and Fork will make the company a reliable double-digit earnings growth business, “far different from the erratic” earnings moves pre-2020 and not reflected in a six-times EBITDA group valuation.