SunTrust analyst Naved Khan maintained his $60 price target on the stock, which represents a potential upside of 30% from the stock's closing price Tuesday of $46.131. TripAdvisor was trading at $46.97 on Wednesday, up 1.43%.
"Our buy thesis centers on our calculations that TRIP's rapidly (+30% annual growth) expanding experiences segment now represents nearly a third of sales and a solid majority of the stock's intrinsic value, while the multiple on Ebitda appears to us to place far more emphasis on the slow-growing core," Khan said. "Experiences has now reached critical mass, which coupled with stabilization in core should help drive accelerating growth in overall top line in FY20/beyond, in our view."
The company's stock could use a shot in the arm after falling more than 12% year to date. However, shares were above the 12-month low closing price of $42.27 it set at the end of May.