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Wall Street’s Ratings for TripAdvisor after 2Q16 Earnings

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Analyst recommendations

Of the 24 analysts rating TripAdvisor (TRIP) stock after the company’s 2Q17 earnings report, 8.3% (two analysts) have issued a “buy” rating, 70.8% (17 analysts) have issued a “hold,” and 20.8% (five analysts) have given it a “sell” rating. None of the analysts have given it a “strong buy” or “strong sell” rating.

Analysts’ rating changes

There have been a few downgrades for TRIP stock following the 2Q17 earnings results on August 9, 2017. JPMorgan cut its target price from $40 to $38 and maintained a “neutral” rating. Wells Fargo cut its target price from $44 to $42. Ascendiant Capital Markets cut its target price from $57 to $46. RBC cut its target price from $47 to $38 and maintained its “sector perform” rating.

Analysts that have downgraded the stock just before the 2Q17 earnings release include Barclays, which cut its target price from $52 to $48. MoffettNathanson cut TRIP’s target price from $42 to $39. Credit Suisse cut the target price from $40 to $34 and changed its rating to “underperform” from “neutral.”

Target price

The consensus 12-month target price for TRIP stock is $41.11, which is lower than the price target of $47.30 after the 1Q17 results. The current target price indicates a 1.9% return potential from the closing price of $40.50 on August 9, 2017. Consensus target prices for other online travel players are as follows:

  • Priceline (PCLN) has a 12-month target price of $2,087.30 with a return potential of 9.5%.
  • Expedia (EXPE) has a 12-month target price of $173.80 with a return potential of 17.5%.
  • Ctrip.com (CTRP) has a 12-month target price of $62.70 with a return potential of 8.7%.

Investors can gain exposure to TripAdvisor by investing in the SPDR S&P Internet ETF (XWEB), which holds 1.6% in TRIP.

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