MarketMoodz
TripAdvisor board shakeup could drive shares higher, Bank of America says
Bank of America upgrades TripAdvisor (TRIP) to Buy from Neutral and lifts the 12‑month price target to $15, implying roughly 51% upside from the latest close. The move comes as activist Starboard Value pushes for a turnaround, adding four directors to TripAdvisor's board and pressing for asset-level actions across Viator and TheFork.
Key Takeaways
- BoA elevates TRIP to Buy with a $15 target, about 51% upside.
- Starboard Value holds ~9% and added four directors to TripAdvisor's board.
- Asset-level catalysts on Viator and TheFork could unlock value ($2.5B+ for assets vs. ~$1.3B core EV).
- BoA notes a trough-level valuation around 3x 2027 EBITDA for asset deals.
- TRIP is down ~29% over the past 3 months, setting up potential upside if execution matches the setup.
People Involved
- Nafeesa GuptaBank of America Analyst
- Justin PostBank of America Analyst
- Starboard ValueActivist hedge fund
Entities Involved
- TripAdvisor, Inc. (TRIP)Online travel reviews and bookings platform
- ViatorTripAdvisor asset - online excursions platform
- TheForkTripAdvisor asset - dining reservations platform
- Bank of AmericaInvestment bank and equity research firm that issued the upgrade
- Starboard ValueActivist hedge fund pushing for turnaround
MarketMoodz Analysis
The upgrade and board shakeup could accelerate value realization for TRIP by improving capital allocation and monetization of asset-level properties. If Starboard’s directors push for trims or bolt-on acquisitions—especially in Viator and TheFork—TRIP could shift toward a higher-margin mix with faster-growing segments.
Valuation context matters: BoA’s framework points to asset-level actions trading near a trough multiple (around 3x 2027 EBITDA), with Viator and TheFork potentially valued at roughly $2.5B in aggregate versus a $1.3B enterprise value for the core hotels-focused platform. That spread provides a potential catalyst for multiple expansion if assets are monetized or more aggressively integrated.
Investors should watch for concrete governance moves and asset-level deal details in the coming quarters, including Starboard’s next leverage points, any asset divestitures, and the pace of monetization across Viator and TheFork, alongside macro travel demand trends.
Source: Original Article