TripAdvisor's stock price at last check eased 1.1% to $18.16 a share after the downgrade by Deutsche Bank analyst Lloyd Walmsley, who cut his rating to hold from buy.
The shares were down 40% in 2020 through Tuesday's close.
The analyst also more than halved his price target on the Needham, Mass., company, to $21 a share from $45. That new target indicates a roughly 15% premium over its current trading price.
While he sees slight signs of an uptick in interest on the part of consumers and others in making travel plans, Deutsche Bank's Walmsley said his confidence in the recovery of the travel sector over the medium term is lower than it was a month ago, according to TheFly.
Walmsley sees a competitive shift toward larger online travel agencies, which have "control over their own destiny."
The travel industry analyst also sees challenges ahead for Booking Holdings (BKNG) - Get Report and Expedia (EXPE) - Get Report, with booking levels returning to 2019 levels only in 2022, TheFly reported.
Even 2021 booking levels will still be significantly off, amounting to just 70% to 75% of their 2019 levels, the analyst wrote.
Last week, TripAdvisor said it would be laying off a quarter of its workforce, or roughly 900 employees, as the travel industry has just about shut down amid the coronavirus epidemic.
The company said remaining salaried workers would take a 20% cut in pay, and it was also closing offices in Boston and San Francisco to reduce costs.