On Friday, BTIG affirmed its Buy rating on shares of TripAdvisor (NASDAQ:TRIP), maintaining a price target of $35.00. The firm observed positive trends in the company's first-quarter data, which contrasts with the softer quarter-to-date trends reported for other online travel agencies.
BTIG noted an improvement in traffic to TripAdvisor-branded sites, particularly in February and March compared to January, which could signal a strong performance for the Branded Hotel segment.
Additionally, BTIG highlighted an acceleration in traffic to Viator, TripAdvisor's tour and activity booking service, indicating potential for bookings to surpass expectations. However, the firm also pointed out an increase in search engine marketing (SEM) activity, suggesting higher-than-anticipated operational expenditures (OpEx) for Viator.
Despite the rise in assumed Viator OpEx, BTIG has increased its revenue estimate for TripAdvisor in the first quarter, adjusting the figure from $388 million to $397 million. The adjustment reflects anticipated growth across the company's Branded Hotel, Viator, and TheFork segments. Despite the higher revenue forecast, BTIG has left its earnings before interest, taxes, depreciation, and amortization (EBITDA) estimate for the quarter unchanged.
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