Tripadvisor: Activist Pressure Supports Our Upside Outlook
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Mare Evidence Lab6K FollowersFollow5ShareSavePlay(9min)CommentsSummaryTripadvisor remains a Buy supported by activist involvement and strategic restructuring despite recent share price weakness.Q4 results showed stable top-line sales, margin pressure from higher marketing, and strong growth in Experiences and TheFork segments.Starboard Value is driving operational improvements and exploring strategic alternatives, which could unlock significant shareholder value.TRIP trades at a low 3.45x EV/EBITDA and >16% FCF yield, with a sum-of-the-parts analysis indicating 48% upside from current levels.Wachiwit/iStock Editorial via Getty Images We were not very lucky with the initiation of our coverage of Tripadvisor (TRIP). The ongoing conflicts in the Middle East, with travel disruptions and negative sentiment on the SaaS sector, have weighed on the overallThis article was written byMare Evidence Lab6K FollowersFollowBuy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck.Analyst’s Disclosure: I/we have a beneficial long position in the shares of TRIP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.