Stifel Earlier Assumed Coverage On TripAdvisor With Buy Rating, $120 Target

Stifel analyst Scott Devitt earlier resumed coverage on TripAdvisor, Inc. TRIP with a Buy rating and a price target of $120 in a report published Wednesday. He pointed to improved traffic monetization and increased integration of the components that comprise its website as key drivers behind the decision. He noted that the company has taken steps to decrease the extent to which users must visit intermediary OTA partners' websites, and thus leave TripAdvisor's own site. He also mentioned that high levels of growth are expected (25% CAGR from 2013 to 2016E). In terms of risk, he also noted that “there are always risks that the target price for any security will not be realized. In addition to general market and macroeconomic risks, for TripAdvisor, these risks include: increased competition from Google and other travel platforms, the deterioration or loss of traffic from Google and online travel agencies, further expansion into less or un-profitable international markets, potential changes to Google and other search engine algorithms, a decrease in trust of the user-reviews by hotel shoppers and concentrated voting control”.