Oppenheimer Cuts Tripadvisor Price Target As “InstaBook” Does Not Equal “InstaResults

In a research report issued today, Oppenheimer analyst Manish Hemrajani reiterated an Outperform rating on Tripadvisor (NASDAQ:TRIP), while reducing his price target to $90 (from $99) which still represents a potential upside of 29% from where the stock is currently trading.

Hemrajani explained his new price target, “After our TRIP out west (no pun intended) to the PhoCusWright Conference in Los Angeles we are of the view that the Instabook (IB) feature is likely to take longer than we had anticipated to ramp as TRIP continues to educate hotel chains and independents of the benefits of IB. Devoid of any large OTA currently on IB, supply buildout will take time. We are lowering our PT to $90 from $99 largely on lowered estimates and while click-based revenue could remain pressured in the near term, we remain positive on the longer-term potential and opportunity ahead of TRIP as it looks to better monetize its vast and growing online user base.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Manish Hemrajani has a total average return of 5.9% and a 52.4% success rate. Hemrajani has a -10.9% average return when recommending TRIP, and is ranked #1299 out of 3376 analysts.

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