Oppenheimer Initiates Bullish Stance On Tripadvisor; Sees 12% Upside

In a research report issued yesterday, Oppenheimer analyst Manish Hemrajani maintained an Outperform rating on Tripadvisor (NASDAQ:TRIP) with a price target of $99, which implies 12% potential upside from current levels.

Hemrajani said, “As part of our expansion of Internet travel coverage, we initiate coverage of TripAdvisor Inc. (TRIP), the world’s largest travel review website, with an Outperform rating and $99 PT. We’re enthused about TripAdvisor’s attractive/robust business model including high margin and cash conversion, launch of meta search, direct booking, improving conversion rates, mix shift in audience to mobile and emerging market penetration. Our $99 target values TRIP at 36x our 2015 adjusted EPS forecast of $2.75 (27.3x estimated 2016 EPS of $3.62). We believe TRIP’s superlative global reach, social characteristics, network effect, strong brand positioning, robust traffic share, and high user engagement warrant a premium multiple.”

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 3.9% and a 35.7% success rate. Hemrajani is ranked #1484 out of 3337 analysts.

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