In a report published Thursday, Credit Suisse analyst Stephen Ju reiterated an Outperform rating on TripAdvisor LLC TRIP, but lowered the price target from $92.00 to $88.00.
In the report, Credit Suisse noted, "TRIP intends to step up its investments into emerging and newly acquired business as management looks to 1) take advantage of the already-existing demand on the core TripAdvisor properties as well as 2) drive incremental demand against the supply in the newly-acquired and launched businesses. While this results in near-term deleverage primarily on increased offline marketing, we believe this is the correct long-term strategy. Hence while our 2015 Adj. EBITDA estimates reset 11% lower, our long-term estimates increase as the new businesses gain scale. Otherwise our investment thesis based on growing consumer awareness and the resulting increase in CPC-based revenue at little or no incremental cost remains unchanged."
TripAdvisor LLC closed on Wednesday at $67.27.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in