Mar. 27 at 2:20 PM
Bank of America upgraded Tripadvisor from Neutral to Buy, citing a clearer path to value realization driven by shareholder activism and growing strategic options. Analyst Nafeesa Gupta also raised the price target to
$15 from
$14.
The upgrade highlights the influence of Starboard Value, which holds a ~9% stake and is pushing for portfolio actions. Its involvement increases the likelihood that Tripadvisor explores asset sales or restructuring, especially as markets may be undervaluing its faster-growing segments.
A sum-of-the-parts analysis values Viator and TheFork at over
$2.5B combined—nearly double Tripadvisor’s current enterprise value (~
$1.3B). Viator alone is estimated at
$1.3B–
$2.5B, while TheFork is valued between
$372M and
$1.1B.
Recent governance changes, including adding four new board members under a cooperation agreement with Starboard, support the strategic shift.
$TRIP