Deutsche Bank Reiterates Buy Rating, $50 PT on Tripadvisor
In a report published Monday, Deutsche Bank reiterated its Buy rating and $50.00 price target on Tripadvisor (NASDAQ: TRIP).
Deutsche Bank noted, “Expedia's acquisition of Trivago confirms our thesis that an OTA Cold War is leading to an increased value on travel related traffic from meta-search players, which underscores the value of TripAdvisor, in our view. We see the PCLN/KYAK and EXPE/Trivago transactions as potentially driving marketing dollars to TripAdvisor, the largest independent online travel traffic driver with a broad global footprint. The transactions' rich multiples of 16x 2013 EBITDA for KYAK and an estimated 26x for Trivago compare favorably to TRIP's current trading multiple of 13x 2013 EBITDA for what we view as a better business. We reiterate our Buy rating and $50 price target on TripAdvisor shares.”
Tripadvisor closed on Friday at $41.97.
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