TripAdvisor Analyst 'Roller-Coaster' Roundup

TripAdvisor, Inc. TRIP reported Q3 financial results Tuesday and earnings that missed expectations.

The stock felt the sting of investor disappointment Wednesday, falling over 14 percent to $71.85.

Below are comments from analysts following the earnings release along with current ratings and price targets.  Stifel was the most bullish and ready for a roller-coaster ride.

Wunderlich - Hold, $90 price target
CPC headwinds in Q3 and Q4 with hotel shoppers clicking less. The company experienced lower clicks per hotel shopper starting in mid-August and expects it to continue through Q4 given past seasonal trends. The lower CPC revenue guidance reflects the continued sensitivity of the business to hotel shopper activity.  The company maintained FY14 revenue guidance, but lowered EBITDA growth to low 20 percent range from the mid 20 percent range. We are lowering our FY15 EBITDA and EPS estimates by 3 percent and 5 percent.

Jefferies - Hold, $82 price target
TripAdvisor reported a mixed quarter as solid click-based rev growth and contribution from Viator and La Fourchette drove solid top-line growth. Margins, however, once again came in lower than expected as the company keeps investing heavily in brand building (TV ad campaign) and in growth opportunities (mobile and personalization). In addition, guidance came in below consensus on seasonal decline in clicks per hotel shopper. Risks include: 1) Macro-economic headwinds; 2) Competition from search engines, Internet portals, travel search / research websites, OTAs; 3) Customer concentration.

Stifel - Buy, $120 price target
The company fairly consistently mis-forecasts its business so now, immediately following a period of over-forecasting, has historically been a time to sit and wait for the benefit that the updated under-forecasting should eventually bring to the shares. The inability of the company, on a fairly consistent basis, to be able to forecast its own business in three-month increments is discouraging to us but the associated sell-off in the shares leaves us with little choice but to continue to recommend the shares and wait for the next ride up this roller-coaster.