Evaluating Tripadvisor: Insights From 10 Financial Analysts

Throughout the last three months, 10 analysts have evaluated Tripadvisor TRIP, offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $18.1, a high estimate of $24.00, and a low estimate of $14.00. This current average represents a 18.47% decrease from the previous average price target of $22.20.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Tripadvisor's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Tripadvisor. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Tripadvisor compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Tripadvisor's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Tripadvisor's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Tripadvisor analyst ratings.

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Get to Know Tripadvisor Better

Tripadvisor is the world's leading travel metasearch company. Its platform offers 1 billion reviews and information on about 8 million accommodations, restaurants, experiences, airlines, and cruises. In 2023, 58% of revenue came from the company's core Brand Tripadvisor segment, which includes hotel revenue generated through advertising on its metasearch platform. Viator, its experiences brand, was 41% of sales in 2023, and TheFork, its dining brand, represented 9% of revenue (about 8% of sales were intersegment, which are eliminated from consolidated revenue).

Tripadvisor's Financial Performance

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Tripadvisor showcased positive performance, achieving a revenue growth rate of 0.61% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.

Net Margin: Tripadvisor's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 4.83%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Tripadvisor's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.85% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Tripadvisor's ROA stands out, surpassing industry averages. With an impressive ROA of 0.87%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.07, caution is advised due to increased financial risk.

Analyst Ratings: Simplified

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.