On Wednesday, DA Davidson adjusted its stance on TripAdvisor (NASDAQ:TRIP) shares, moving from a Buy to a Neutral rating while simultaneously increasing the price target to $31 from the previous $20. This revision follows the company's first-quarter earnings for 2024.
The travel platform's first-quarter performance was described as satisfactory by the firm, with revenues roughly meeting expectations, although the TripAdvisor brand slightly underperformed and Viator exceeded them. The adjusted EBITDA for the quarter modestly surpassed both the firm's projections and the $45 million consensus.
However, TripAdvisor has seen a slow beginning to the second quarter, attributed in part to changes in Google (NASDAQ:GOOGL)'s search engine results page (SERP). This, along with the timing of Easter, is anticipated to lead to a high-single-digit year-over-year decline in revenues for the core TripAdvisor brand during the second quarter.
Due to these second-quarter trends, TripAdvisor has adopted a more conservative outlook for its full-year performance. The market's response to these developments will be watched closely as investors and industry observers assess the impact of the revised expectations on TripAdvisor's future growth trajectory.
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