7.6 C
New York
Thursday, March 28, 2024

Tripadvisor Falls Sharply On Q2 Miss; Analysts Say Growth Priced In

Courtesy of Benzinga.

Related TRIP
Markets Steady Despite Mixed Economic Data
U.S. Markets Trade Flat; Liberty Media Shares Surge On Senior Note Conversation Rate Change
Expedia Now Accepting Bitcoin (Fox Business)

Tripadvisor (NASDAQ: TRIP) shares fell sharply Thursday after it missed second-quarter profit expectations and said higher advertising costs will cut future earnings.

The stock traded recently down 8.6 percent to $98.06.

SunTrust's Robert Peck maintained a Neutral rating for the online travel service and said the company's success is "already factored into the share price."

Peck called higher advertising spending "prudent" but expects it will keep profits in check in a "multi-quarter, multi-year process."

But Dean Prissman of Credit Suisse said he's "comfortable" with higher spending to expand the company's franchise and support its recently acquired LaFourchette restaurant reservation service.

Prissman, in a note Thursday, maintained an Outperform rating and $120 target.

The stock's 32 percent gain in the last six months versus six percent for the NASDAQ "should give investors pause," according to UBS' Eric J. Sheridan. In a note Thursday, Sheridan maintained a Hold rating, but raised his target from $87 to $98, citing potential revenue growth.

"The debate will pivot on its various growth initiatives," Sheridan said. "But until we see more concrete evidence, we're staying on the sidelines."

Posted-In: Credit Suisse Dean PrissmanAnalyst Color Earnings News Guidance Reiteration Analyst Ratings

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Stay Connected

157,450FansLike
396,312FollowersFollow
2,280SubscribersSubscribe

Latest Articles

0
Would love your thoughts, please comment.x
()
x