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Analyst Estimates for TripAdvisor in 2017

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Analyst estimates

TripAdvisor’s (TRIP) sales are expected to grow 7.9% year-over-year (or YoY) in 1Q17 to $379.8 million. Revenue growth is expected to accelerate to 10.6% in 2Q17 to $432.6 million and 13.3% in 3Q17 to $477 million. For 2017, TripAdvisor is expected to post sales growth of 11.6% to ~$1.7 billion.

In line with the company’s outlook, analysts are estimating TripAdvisor’s EBITDA for 2017 to decline 1% YoY to $349.4 million. Earnings per share are also expected to fall 5.8% in 2017 to $1.32.

The company’s sales are expected to increase 15% in both 2017 and in 2018, achieving sales of $1.7 billion and $2 billion, respectively.

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Analyst recommendations

Of the 28 analysts rating TripAdvisor (TRIP) stock after the company’s 4Q16 earnings report, 7% (two analysts) issued a “buy” rating, 82% (23 analysts) issued a “hold” rating, and 11% (three analysts) issued a “sell” rating.

Target price

The consensus 12-month target for TRIP’s stock price is $49.27, significantly lower than the price target price of $63.86 after 3Q16. The current target price indicates a 5% return potential from the February 17, 2017, closing price of $46.92. Consensus target prices for other online travel players follow:

  • Priceline (PCLN) has a 12-month target price of $1,740.70 with a return potential of 5.6%.
  • Expedia (EXPE) has a 12-month target price of $141.00 with a return potential of 17.7%.
  • Ctrip.com (CTRP) has a 12-month target price of $52.90 with a return potential of 16.3%.

TRIP makes up 1.5% of the NASDAQ-100 Ex-Technology Sector ETF (QQXT).

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