B.Riley Downgrades TripAdvisor (TRIP) to Neutral

B.Riley analyst Naved Khan downgraded TripAdvisor (NASDAQ: TRIP) from Buy to Neutral with a price target of $19.00 (from $26.00).

The analyst comments: "We're downgrading Tripadvisor from Buy to Neutral to reflect a deterioration in Core (i.e., Brand Tripadvisor) revenue growth and margins, implied in management's outlook. While a slowdown in travel and high competition are presenting headwinds to top-line growth, mgmt's planned investments into initiatives to position the business for sustainable growth will hurt margins in the near term. We also note that Viator's bookings have seen a step-down over the past several quarters, and we no longer view a spin-off of the business as a near-term event, removing a potential catalyst for the stock. Given the headwinds in core and lack of NT catalysts (barring the re-emergence of a buyer, into which we have no visibility), we opt to move to the sidelines."

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 $16.32 yesterday.

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