Bank of America Upgrades TripAdvisor to 'Buy' Rating

Bank of America upgraded TRIP to a Buy rating and raised its price target to $15, citing a clearer catalyst path for value realization driven by accelerating activist engagement. The upgrade comes after Starboard Value, which holds a 9.4% beneficial stake, secured four of ten board seats through a cooperation agreement reached in late March.

The analysts see significant hidden value in TripAdvisor's portfolio, estimating that its experiences marketplace Viator and European restaurant platform TheFork could be worth more than $2.5 billion combined, roughly double the company's current enterprise value of approximately $1.3 billion. Viator posted $294 million in Q3 2025 revenue, up 9% year over year, with adjusted EBITDA margins expanding to 16.8% from 11.3%.

However, the legacy TripAdvisor brand faces headwinds, with Hotels & Other revenue guided to decline mid-to-high teens in 2026 as AI-driven search continues to erode hotel metasearch traffic. The bull case rests on Starboard's ability to unlock value through potential asset sales, spinoffs, or operational improvements across the portfolio. Investors should watch for strategic announcements from the newly reconstituted board in coming quarters.