TripAdvisor's (TRIP) visibility into a recovery remains limited, while it continues to invest behind Experiences segment via product enhancements, marketing diversification and artificial intelligence initiatives, UBS said in a note Tuesday.
Experiences segment growth is being hurt by search-engine-optimization headwinds at its core Tripadvisor point of sale, the firm noted.
Viator point of sale bookings rose 10%, but consolidated Experiences bookings growth slowed to 5% as SEO pressure cut growth by an estimated five percentage points, while segment revenue grew just 3% amid elevated cancellations and lower booking values, the brokerage noted.
Macro uncertainty, softer US-to-Europe demand, and bad weather prompted a more cautious second-half outlook, with Q3 consolidated revenue expected to decline 7%-10% year-over-year, according to UBS.
The firm lowered its revenue and adjusted earnings before interest, taxes, depreciation, and amortization estimates for 2026 and 2027.
UBS lowered its price target to $12 from $15, maintaining a neutral rating.
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