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Research Alert: CFRA Lowers Opinion On Shares Of Tripadvisor Inc To Strong Sell From Sell
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Research Alert: CFRA Lowers Opinion On Shares Of Tripadvisor Inc To Strong Sell From Sell
Jul 10, 2025 10:04 AM

12:40 PM EDT, 07/10/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Shares of TRIP are up roughly 40% since July 3, 2025, on the disclosure of a 9% ownership stake by Starboard Value, an activist investor with a history of engaging management teams to improve operational efficiency. Indeed, TRIP trades at a significant discount to its long-term average forward multiple and has significantly underperformed online travel agency (OTA) peers, with shares down 35% since 2020 despite a broader rebound in travel spending since then. We lower our rating to Strong Sell, maintaining our 12-month price target at $12, 10x our 2025 EPS estimate, a discount to its three-year average forward multiple, as we feel the recent move fully reflects turnaround potential while fundamental challenges remain steep. We feel its legacy business faces steep competition from OTAs and structural headwinds, including dependency on Google's algorithm. TheFork and Viator have been primary growth drivers but have steadily decelerated over the past nine quarters.

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