Critical Insights From Tripadvisor Analyst Ratings: What You Need To Know
During the last three months, 13 analysts shared their evaluations of Tripadvisor (NASDAQ:TRIP), revealing diverse outlooks from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 0 | 10 | 2 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 6 | 2 | 0 |
| 2M Ago | 0 | 0 | 2 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $22.23, a high estimate of $30.00, and a low estimate of $15.00. A 11.96% drop is evident in the current average compared to the previous average price target of $25.25.
Diving into Analyst Ratings: An In-Depth Exploration
The analysis of recent analyst actions sheds light on the perception of Tripadvisor by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Patrick Scholes | Truist Securities | Lowers | Hold | $21.00 | $28.00 |
| Scott Devitt | Wedbush | Maintains | Neutral | $21.00 | $21.00 |
| Ross Sandler | Barclays | Lowers | Underweight | $15.00 | $20.00 |
| Scott Devitt | Wedbush | Lowers | Neutral | $21.00 | $30.00 |
| Doug Anmuth | JP Morgan | Lowers | Underweight | $17.00 | $25.00 |
| Lloyd Walmsley | UBS | Lowers | Neutral | $20.00 | $27.00 |
| Brian Pitz | BMO Capital | Lowers | Market Perform | $20.00 | $23.00 |
| Benjamin Miller | Goldman Sachs | Lowers | Buy | $27.00 | $34.00 |
| James Lee | Mizuho | Lowers | Neutral | $21.00 | $23.00 |
| Tom White | DA Davidson | Lowers | Neutral | $20.00 | $31.00 |
| Scott Devitt | Wedbush | Maintains | Neutral | $30.00 | - |
| Ronald Josey | Citigroup | Raises | Neutral | $28.00 | $23.00 |
| Patrick Scholes | Truist Securities | Raises | Hold | $28.00 | $18.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Tripadvisor. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Tripadvisor compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Tripadvisor's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of Tripadvisor's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Tripadvisor analyst ratings.
Discovering Tripadvisor: A Closer Look
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).
Understanding the Numbers: Tripadvisor's Finances
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Tripadvisor's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 6.47%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -14.94%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Tripadvisor's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -6.96% 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 -2.24%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Tripadvisor's debt-to-equity ratio surpasses industry norms, standing at 1.11. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
The Significance of Analyst Ratings Explained
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.