TripAdvisor (TRIP) PT Trimmed at Susquehanna Into Q1 Print

Susquehanna analyst Brian Nowak reiterated an Neutral rating and trimmed his price target on TripAdvisor (NASDAQ: TRIP) to $87.00 (from $90.00) ahead of Q1 results on Tuesday, May 6, after the market close. The analyst sees in-line revenue but 4% below on EBITDA. The analyst also notes consensus EBITDA appears noisy...with a range from $95mn to $138mn.

"Click-based revenue (~75% of total revenue) and meta monetization remain the focal points," Nowak notes. "We think TRIP's meta monetization is improving, as our meta screen scrapes show that PCLN notably stepped up its TRIP bidding throughout 1Q, going from 16% of top bid slots in September to 54% in 1Q (see Figure 1). In our view, the smartest ad spender in the group -- with an ability to spend more dollars per click – moving up and displacing smaller players (like Otel and Olotels) and EXPE in the auction market is a positive signal about TRIP’s pricing, meta conversion and click-based revenue growth.

He added, "But there are multiple moving pieces -- slowing hotel shopper growth, incremental international and mobile headwinds, and improving meta monetization -- behind TRIP's reported click-based revenue. In aggregate, we expect 1Q:14 to be the first time click-based revenue growth outpaces hotel shopper growth "

The firm is modestly (3%) lowering '14 EBITDA due to higher expected TV spending in 2H:14.

For an analyst ratings summary and ratings history on TripAdvisor click here. For more ratings news on TripAdvisor click here.

Shares of TripAdvisor closed at $82.60 yesterday.

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