Tripadvisor, Inc. (NASDAQ:TRIP) has recently been identified as one of the best breakout stocks to invest in by analysts at Bernstein. The research firm reiterated an Outperform rating on the stock, with a $20 price target that represents a 30% upside potential. This positive outlook is driven by Tripadvisor’s integration plan, which aims to streamline operations and create significant synergies.
The company has been facing pressure from an activist investor to spin off Viator, an online marketplace for booking tours and activities. However, Tripadvisor has decided to integrate Viator into its core brand, Tripadvisor, rather than pursuing a spinoff. Bernstein has endorsed this decision, suggesting that the integration could result in cost savings of $85 million and boost the company’s FY 27 EBITDA by approximately 20%. The research firm has also highlighted the success of TheFork, an online restaurant booking platform that has delivered impressive revenue growth and margins.
In its most recent earnings report, Tripadvisor delivered mixed results, with earnings per share of $0.65 beating analyst estimates by $0.09, but revenue falling slightly below expectations at $553 million. Despite this, Tripadvisor remains a key player in the online travel industry, connecting travelers with a vast database of user-generated reviews, guidance, and booking options for hotels, restaurants, tours, and attractions.
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In conclusion, Tripadvisor, Inc. (NASDAQ:TRIP) continues to impress analysts with its integration plan and strong performance in the online travel industry. Investors may want to keep an eye on this breakout stock as it navigates through the challenges and opportunities in the market.
Disclosure: None. This article was originally published on Insider Monkey.
