TRIP Stock Gains Premarket As Analysts Raise Tripadvisor Targets – See Value Creation From TheFork Deal

• DA Davidson raised its Tripadvisor price target to $15.50, implying a 23% upside.
• The firm said TheFork's $700 million sale price gives the company more flexibility for shareholder returns and growth investments. 
• BTIG maintained its Buy rating, saying that TheFork sale unlocks value not fully reflected in Tripadvisor’s stock. 

Tripadvisor Inc. (TRIP) stock gained in premarket on Tuesday as analysts said the travel platform’s sale of its restaurant reservation business, TheFork, to American Express (AXP) could unlock value. 

The company’s $700 million sale of TheFork prompted DA Davidson to raise its price target. 

DA Davidson Sees 23% Upside For TRIP 

DA Davidson increased its price target on Tripadvisor to $15.50 from $10.50 while maintaining a Neutral rating, implying a 23% upside to the stock’s last close. The firm said the purchase price appears to be near the high end of what many investors expected TheFork could command in a sale.

The firm added that the cash proceeds may give Tripadvisor greater freedom to return capital to shareholders and strengthen the investment case for the company’s remaining operations, including its Viator experiences segment and core travel businesses.

Tripadvisor stock edged 0.08% higher in Tuesday’s premarket. 

BTIG Sees Value Creation For TRIP 

BTIG reiterated its ‘Buy’ rating and maintained a $15 price target. According to the firm, the transaction equates to roughly $4.60 per Tripadvisor share after taxes and values TheFork at about 18 times projected 2026 EBITDA.

BTIG described the divestiture as a positive development because it surfaces value that may not have been fully reflected in Tripadvisor’s stock price. The firm noted that while Tripadvisor still operates a challenged metasearch business, it retains ownership of Viator, one of its most closely watched assets.

BTIG said commentary accompanying the announcement suggests Tripadvisor intends to continue investing in its experiences business rather than pursuing strategic alternatives for Viator.

That stance could generate debate among shareholders who had hoped the company might consider additional actions to realize value from its remaining portfolio.

TRIP Retail Traders View 

On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory with a 2,600% increase in message volume over the last 24 hours. 

A user said, “With the TheFork transaction effectively unlocking $700M in cash, the real focus now shifts to what management does next, especially potential share buybacks.”

Another user said, “TheFork was sold at ~3x TTM[Trailing Twelve Months] sales and ~25x TTM adj. EBITDA. In the current AI disrupt sentiment, it's more than okay for restaurant booking platform.”

TRIP stock has declined by 13% year-to-date.

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