Cantor Cuts Tripadvisor Price Target Despite Strong 4Q Results


Cantor analyst Naved Khan is weighing in with his thoughts on Tripadvisor (NASDAQ:TRIP), after the company reported strong fourth-quarter results, which topped Street expectations for both revenue and EBITDA. Surprisingly, the analyst reduced the price target to $84 (from $90), while maintaining a Hold rating on the stock. The new price target represents a potential upside of 4.5% from where the stock is currently trading.

Khan noted, “The company’s new disclosures show that while the core “Hotel” segment (~90% of total revenue) continues to grow in excess of 20%, benefiting from investments into growth initiatives and increased ad spending, the higher expenses are also causing EBITDA margins to come under pressure. We believe this trend is likely to continue in 2015 as well and is reflected in management’s commentary and outlook for revenue/EBITDA.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Naved Khan has a total average return of 17.6% and a 60.5% success rate. Khan has a 21.1% average return when recommending TRIP, and is ranked #408 out of 3510 analysts.