UPDATE: SunTrust Initiates Coverage on TripAdvisor

In a note released Friday morning, SunTrust analyst Robert Peck initiated coverage on TripAdvisor, Inc.

with a Neutral rating and a $105 price target. Peck says TripAdvisor is benefiting from the industy's "four C's"

Looking at the industry as a whole, Peck noted TripAdvisor's target market, the global travel bookings market, is estimated to be ~1.3 trillion in 2014, 35 - 40 percent of which is online. For TripAdvisor in particular, Peck noted the company is growing its revenue by ~30 percent this year. As a driver of this growth Peck pointed to TripAdvisor's transition to meta search and instant booking. Finally, Peck views the company's expansion into new offerings such as vacation rentals and dining reservations as another way to drive revenue growth. Commenting on the current price of TripAdvisor's shares Peck said, "While we are optimistic about the future of TripAdvisor and the opportunity in front of the company, we think the market has priced in many of the positives and some of the optionality."