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Oppenheimer Sees TripAdvisor's Lower Expectations Likely Already Baked In

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Oppenheimer Sees TripAdvisor's Lower Expectations Likely Already Baked In

Jed Kelly of Oppenheimer isn't particularly bullish on Tripadvisor Inc (NASDAQ: TRIP) heading into its first-quarter results, which are scheduled for May 4.

Kelly stated that while Tripadvisor "remains one of the most valuable and innovative assets in all of travel," there are "limited near-term catalysts" from Instant Booking's rollout. As such, investors should wait to become more constructive.

Related Link: Vetr Top Raters Get Bullish On TripAdvisor

Kelly offered several key points investors should look out for in the company's quarterly print and subsequent conference call:

  • 1. Questions should focus on Instant Booking's monetization, especially around conversion improvement and repeat usage.
  • 2. As of last quarter, smartphones were monetizing at 30 percent of desktop but are driving a large portion of hotel shopper growth.
  • 3. Tripadvisor's management guided its hotel revenue to decelerate at a "meaningful" pace.
  • 4. Higher advertising spending could pressure industry advertising margins.
  • 5. Bottom line, the analyst's revenue estimates is 2 percent below the Street's, margins are 9 percent below the Street's estimates and EBITDA is 3 percent below the Street's estimates.

Shares of TripAdvisor were reiterated at a Perform rating with no assigned price target.

Latest Ratings for TRIP

DateFirmActionFromTo
Nov 2019Initiates Coverage OnUnderweight
Nov 2019UpgradesUnderperformMarket Perform
Nov 2019MaintainsBuy

View More Analyst Ratings for TRIP
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Posted-In: Jed KellyAnalyst Color Previews Reiteration Travel Analyst Ratings Trading Ideas General

 

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