BofA double upgrades Tripadvisor, says travel stock can surge nearly 60%

Shares of Tripadvisor are poised to rally as travel demand recovers and consumers book more experiences, Bank of America said. Analyst Nat Schindler double-upgraded the travel booking company to buy from underperform, citing strong growth within the company’s experiences booking platform known as Viator. “We believe that TRIP’s Viator is making strong in-roads in an otherwise underpenetrated online Experience booking market,” he said in a Wednesday note to clients. TRIP YTD mountain TripAdvisor’s performance this year Given this setup, Schindler upped the bank’s price target to $38 from $19 a share, suggesting shares could rally more than 57% from Tuesday’s close. He also increased revenue estimates for 2023 and 2024. So far this year, the stock’s rallied more than 34% after slumping 34% in 2022. In the third quarter, the experiences platform accounted for 38% of Tripadvisor’s total revenue, compared to 18% in 2019, Bank of America said. Sensor Tower data suggests daily active users and downloads are on the rise. Schindler expects Viator to help “keep near-term profit margins in check.” At the same time, he views Tripadvisor’s core business as an offering that could support further experiences growth. “Core TRIP remains a cash cow that while not a significant grower over time can both fund and drive customers to high growth Viator,” he said. — CNBC’s Michael Bloom contributed reporting

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