UPDATE: Stifel Nicolaus Downgrades TripAdvisor to Hold on Strong, Platform, Positive Fundamentals

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In a report published Monday, Stifel Nicolaus analyst Michael Purcell downgraded the rating on TripAdvisor TRIP from Buy to Hold, and removed the $58.00 price target.

In the report, Stifel Nicolaus noted, “We are reducing our rating on shares of TripAdvisor from Buy to Hold on valuation as shares have surpassed our $58 price target. TripAdvisor is a strong platform, providing unique utility to travel planners and targeted audience to travel marketers. We remain positive on the fundamentals of the company -- in particular, we believe the transition of the ad unit to meta display will improve the user and advertiser experience. However, with shares trading at 38x (1.8x PEG) on 2013 estimates, and 19x our 2014 EBITDA estimate, we believe significant earnings upside is reflected in the current share price. We would be more constructive again in the mid-$50 range, all else being equal.”

TripAdvisor closed on Friday at $64.49.

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Posted In: Analyst ColorDowngradesAnalyst RatingsMichael PurcellStifel Nicolaus
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