Wunderlich Securities Adjusts TripAdvisor Model For Acquisitions, Currency Headwinds

In a report published Thursday, Wunderlich Securities analyst Blake T. Harper reiterated a Hold rating and $80.00 price target on TripAdvisor, Inc. (NASDAQ: TRIP).

In the report, Wunderlich Securities noted, "We are updating our estimates on TripAdvisor, Inc. (TRIP) to better forecast the individual segments of the business, reducing our 2015 and 2016 estimates by ~1% due to expected fx headwinds, mainly from the Euro. We are now modeling the Subscription and Other segment to grow 72% y/y in 2015, up from our prior 59% y/y forecast, to reflect the full-year contributions of acquisitions in 2014 and offsetting it by lowering our click-based revenue (CPC) growth forecast to 17% y/y from 22% y/y.

"Our changes are highlighted below and in Figure 1, with the net effect of lowering our 2015 and 2016 revenue, EBITDA and EPS estimates by ~1% due to fx changes and lower margins from the Sub/Other segment compared to CPC. We maintain our $80 price target and
Hold rating on TRIP shares."

TripAdvisor closed on Wednesday at $82.34.