TripAdvisor (TRIP) PT Lowered to $86 at RBC Capital; FX Trips Up Co.

RBC Capital analyst Mark Mahaney reiterated a Sector Perform rating and trimmed his price target on TripAdvisor (NASDAQ: TRIP) to $86.00 (from $91.00) following a Q2 miss and lower guidance, largely driven by FX headwinds.

The keys in the quarter, according to Mahaney: – 1) FX Causing Headaches – The soft currency environment not only led to weaker pricing outside the US/UK but also has been hurting the buying power of its Int’l customers… So much for my Big Fat Greek Wedding. 2) Instant Booking Traction – Partnered with Marriott and Hyatt for IB in Q2. TRIP now working with 6/10 top global hotel brands and 60 hotel/OTA partners leading to 235K properties on the platform. 3) Lowered Guidance – With management citing their views on International CPC pricing for the balance of the year. 4) S&M Deleverage – Of ~800bps Y/Y as TRIP invested $20MM in TV Advertising; TV spend will rise in Q3 then decrease in Q4 due to travel seasonality. 5) Metrics Solid – Unique Visitor Growth (30% Y/Y), Hotel Shopper Growth (22% Y/Y) with a 6% Y/Y decline in Revenue Per Hotel Shopper, but positive growth ex-FX. Traffic is now 50% Mobile.

The firm is lowering 2015 Revenue/EBITDA estimates by 2%/7% to 1.53B (growing 23% Y/Y) and 490MM (5% Y/Y), respectively

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 $93.37 yesterday.

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