"TRIP is an accelerating growth story and we have more confidence that increasing conversion and pricing, the introduction of mobile bookings, brand advertising and longer-term monetization opportunities outside of hotels can drive upside," writes Pac Crest's Chad Bartley, upgrading shares to Outperform.
Bartley, who has a $116 PT, thinks TripAdvisor can sustain 25%-30% revenue growth over time.
Four weeks ago, TripAdvisor upped its 2014 revenue guidance thanks to stronger-than-expected click (search ad) and subscription/transaction/other sales growth. The former is now expected to grow at a high-20s clip in 2014, and the latter at a high-60s rate. Display ads are expected to grow at a mid-to-high teens rate.