$700 Million TheFork Sale Lifts TripAdvisor Price Target to $15.50
TRIP•D.A. Davidson boosted TripAdvisor's price target to $15.50 from $10.50, signaling an 18.4% potential gain. The revision follows the sale of TheFork to American Express for $700 million in cash, strengthening the balance sheet and freeing capital for the core Experiences segment.
1. Analyst Revises Price Target
D.A. Davidson has lifted its price target for TripAdvisor to $15.50 from $10.50, representing a projected 18.4% increase from the $13.09 share price at the time of the report. This upward adjustment reflects expectations of improved financial performance following recent strategic initiatives.
2. Strategic Sale of TheFork
TripAdvisor agreed to sell its restaurant booking platform, TheFork, to American Express for $700 million in cash. TheFork reported $232 million in revenue and $28 million in adjusted EBITDA in the last year, underscoring the asset’s value.
3. Strengthened Balance Sheet and Growth Focus
Proceeds from the sale bolster TripAdvisor's balance sheet, reducing leverage and enhancing capital allocation flexibility. Management intends to redeploy funds into the core Experiences segment to accelerate travel booking services growth.
