Home News Credit Suisse downgrades TripAdvisor; shares down 2% – Expedia, Inc. (NASDAQ:EXPE)

Credit Suisse downgrades TripAdvisor; shares down 2% – Expedia, Inc. (NASDAQ:EXPE)

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Credit Suisse downgrades TripAdvisor (NASDAQ:TRIP) to Underperform from Neutral with a price target of $34, down from $40.

Analyst Paul Bieber cites a higher 2018 television advertisement forecast that would result in a 10% EBITDA decline and a difficult Q3 setup that would require the second half of the year to accelerate to meet the company’s guidance for transaction revenue growth. 

Bieber believes TripAdvisor has a premium valuation compared to (PCLN) and (EXPE) despite deteriorating earnings, weak growth, and potential asset erosion.
*Lowers FY18 EBITDA estimate to $304.4M, down from $339.4M, due to the ad spending.

TripAdviser shares are down 2.16% premarket.  



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