Wells Fargo Maintains a Hold Rating on TripAdvisor Inc

By Jason Carr

Wells Fargo analyst Peter Stabler maintained a Hold rating on TripAdvisor Inc (NASDAQ: TRIP) yesterday. The company’s shares closed yesterday at $40.72.

Stabler wrote:

“We note that Street consensus for 2018 EBITDA had stood at $303MM prior to the print, implying an 8% yr/yr decline vs. reported 2017 EBITDA of $331MM. TripAdvisor, Inc. (TRIP)/Market Perform (2) Price as of 2/14/2018: $40.72 FY 17 CASH EPS: $1.11 FY 18 CASH EPS: $1.02 Shares Out.: 139.0 MM Market Cap.: $5,660.08 MM Rating Basis Information: TRIP Thesis: Though we favor Tripadvisor’s strong consumer brand position and global reach, we believe pivot of brand positioning toward price comparison could yield a new level of competitive pressure and we remain concerned that sacrificing performance marketing for brand TV could have a near¬≠term negative impact on fundamentals. This concern and what we believe to be a full valuation lead us to maintain our Market Perform rating.”

According to TipRanks.com, Stabler is a 5-star analyst with an average return of 26.9% and a 78.7% success rate. Stabler covers the Technology sector, focusing on stocks such as ANGI Homeservices Inc, IAC/InterActiveCorp, and Match Group Inc.

Currently, the analyst consensus on TripAdvisor Inc is Hold and the average price target is $38.50, representing a -5.5% downside.

In a report issued on February 5, SunTrust Robinson also reiterated a Hold rating on the stock with a $37 price target.

The company has a one-year high of $53.29 and a one-year low of $29.50. Currently, TripAdvisor Inc has an average volume of 3.37M.

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TripAdvisor, Inc. owns and operates a portfolio of online travel brands. It operates its business through the Hotel and Non-Hotel segments.