Cantor Fitzgerald cuts TripAdvisor stock price target on weak outlook
Cantor Fitzgerald has lowered its price target on TripAdvisor stock (NASDAQ:TRIP) to $6.00 from $8.00, keeping an Underweight rating. The stock is currently trading at $7.38, near its 52-week low of $7.20, with a year-to-date decline of 49%. The company's poor third-quarter results, with revenue and EBITDA below estimates, prompted the move.
Revenue slipped 4.4% YoY to $1.71 billion, and the company reported a loss of $3.19 per share. The fourth-quarter outlook also fell short of expectations, as the Experience business continues to struggle with macroeconomic and SEO challenges. TripAdvisor plans to invest more in its Viator POS and reorganize the Hotels & Other segment to improve efficiency.
The recently completed sale of The Fork is expected to bolster the balance sheet and financial flexibility. The planned departure of the CEO and CFO adds further uncertainty to the outlook. Despite these headwinds, InvestingPro analysis indicates the stock may be undervalued at the current price.
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