Credit Suisse Decreases Tripadvisor Price Target

In a report release Thursday, Credit Suisse analyst Dean Prissman initiates coverage on Tripadvisor Inc TRIP decreasing its price target from $125 to $120 a share. Analyst at Credit Suisse believe Tripadvisor reported good 2Q 2014 earnings with revenue increasing by 31 percent year-over-year coming in line with Credit Suisse, but Adjusted EBITDA was much below expectations due to an increase ad expenditure. Tripadvisor generating 28 percent year-over year growth in click-based revenue, higher than the company's Q1 14 15 percent. The price target reduction to $120 a share is due to Credit Suisse DCF derived EBITDA estimate decrease from 5 to 4 percent, however its topline estimate remains unchanged.