Why is Tripadvisor (TRIP) One of the Most Undervalued Small Cap Stocks to Invest in Now?

Tripadvisor, Inc. (NASDAQ:TRIP) is one of the most undervalued small cap stocks to invest in now. On October 24, BMO Capital analyst Brian Pitz reiterated a Hold rating on Tripadvisor, Inc. (NASDAQ:TRIP) and set a $15 price target. Similarly, UBS analyst Stephen Ju maintained a Hold rating on the stock the same day, setting a $19 price target.

Why Tripadvisor (TRIP) is Skyrocketing?

Separately, Reuters reported on October 21 that Starboard Value CEO Jeff Smith, speaking at the annual 13D Monitor Active Passive Investment Summit in New York, stated that while Tripadvisor, Inc. (NASDAQ:TRIP) has an “amazing” brand, “there is a huge opportunity to transform and reimagine the user experience to improve revenue growth.”

He added that TheFork, which offers restaurant reservation services, is “the most easily separable and least-integrated of the three businesses”, and could be “sold at an attractive multiple,” with even opportunity to sell the entire company.

“There are standalone opportunities for value creation at each of the Tripadvisor three businesses as well as an opportunity to potentially sell TheFork or the entire company,” Smith stated.

Reuters reported that while engagement between Starboard and Tripadvisor, Inc. (NASDAQ:TRIP) has been continuing for several weeks, this was the first time Smith indulged in a public discussion of his team’s thesis. Tripadvisor, Inc. (NASDAQ:TRIP) said in a statement that:

“We value constructive engagement with all of our shareholders and appreciate their feedback. The Tripadvisor Board of Directors and management team are committed to driving long-term value for our shareholders.”

Tripadvisor, Inc. (NASDAQ:TRIP) is an online travel company that operates and owns a portfolio of online travel brands. The company’s operations are divided into the following segments: Brand Tripadvisor, Viator, and TheFork.

While we acknowledge the potential of TRIP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TRIP and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.