Tripadvisor continues to retain its leadership in the segment

Published By: Eunice Gettys on January 10, 2017 12:46 pm EST

Tripadvisor Inc (NASDAQ:TRIP) is now a part of the coverage list at Citibank and the initial commentary offered by Citi analyst, Mark May, is quite positive. The analyst initiated the stock with Neutral rating and said that Tripadvisor has almost become a necessity for travelers all around the globe. The analyst expects the company to post strong growth in both top and bottom line during the next 12 months. The only concern the analyst has regarding the company is its inconsistent execution record, but recent data suggests that the company has worked around the inherent problems and is moving towards better and sustained execution.

Tripadvisor currently has the largest audience in the online travelling industry, which is constantly growing. The company’s offerings are unique and a combination of consumer reviews, online booking, travel planning, and other related services. The latest addition to the services offered by the company is the instant booking feature that lets the audience instantly search and book travel and holidays.

Tripadvisor is expected to post encouraging growth numbers during the year 2017 backed by easier comps and fewer headwinds from the international business segment. While, the revenue upside for the year 2017 is almost a given the analyst remains skeptical about profitability growth. The competition in the industry is currently very high and almost all the companies have significantly raised their advertisement expenditure in order to maintain their current market share. This will likely keep the stock range bound during the next 12 months and therefore justifies the neutral rating on the stock. The analyst advises investor to look for a better entry point as the stock is currently trading at quite a premium. The analyst ratings for the company are 2 Outperform, 21 Hold, and 3 Underperform. The stock now trades at a price of $50.83 and has lost 0.18% since the open of the market.