UPDATE: Wunderlich Securities Reiterates on TripAdvisor on Solid Quarter and Outlook

In a report published Wednesday, Wunderlich Securities analyst Blake T. Harper reiterated a Hold rating on TripAdvisor TRIP, and raised the price target from $80.00 to $88.00. In the report, Wunderlich Securities noted, “TripAdvisor, Inc. (TRIP) reported Q4 results above us and the consensus and guided FY14 revenue and EBITDA to grow in the mid-20s% range, which was slightly above the revenue consensus (up 23% Y/Y) and in line with EBITDA consensus (26% Y/Y). Click-based advertising revenue was up 17% Y/Y, Display was up 46% Y/Y, and Subscription/other was up 53% Y/Y, with Display well above our estimate of 24% Y/Y due to strength from several customers and the other two segments in line with expectations. We are raising our price target to $88 from $80 to reflect the higher results and guidance, which is derived from our DCF and implied multiples of 8x EV/S, 22x EV/EBITDA, and 33x P/E, which are justified premium to peers.” TripAdvisor closed on Tuesday at $84.20.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsBlake T. HarperWunderlich Securities
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