Citi Initiates Coverage of Tripadvisor (TRIP) Stock With Neutral Rating

On May 28, analysts at Citi initiated coverage on Tripadvisor, Inc. (NASDAQ:TRIP)’s stock with a “Neutral” rating and a price target of $16.00. The firm’s analysts highlighted the growth in its Viator brand and the favourable changes in revenue trends at Brand TripAdvisor.

It also acknowledged a more efficient ownership structure after the deal with Liberty TripAdvisor. That being said, the analysts remain cautious because of the economic uncertainty and investments in Brand TripAdvisor.

The analysts hinted at double-digit revenue growth rates at Viator and mentioned the improved engagement and conversion rates at Brand TripAdvisor in Q1 2025. During the quarter, Viator saw 10% YoY revenue growth to $156 million. Its Gross bookings value (GBV) reached $1.1 billion during Q1 2025, demonstrating YoY growth of ~10%.

Moving forward, the focus of analysts will be on the performance of Viator and Brand TripAdvisor, the impact of strategic investments, and Tripadvisor, Inc.’s ability to navigate broader economic uncertainties. For Q2 2025, the company expects consolidated revenue growth of between 5% – 8% and an adjusted EBITDA margin of ~16% – 18%.

At Viator, Tripadvisor, Inc. anticipates mid-teens growth in the number of experiences booked, revenue growth of ~9% – 11%, and adjusted EBITDA margin in mid- to high-single digits.

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