TripAdvisor Sees Strong Demand Improvement Across Key Segments; Shares Attractive

Narrow-moat TripAdvisor's shares traveled nearly 20% higher on second-quarter sales that flew to 99% of 2019’s level versus 70% last quarter. We plan to lift our $35 fair value estimate by a low-single-digit percentage as our 2022 sales forecast moves to the low 90s of prepandemic marks from the mid-80s. The shares remain attractive despite the Aug. 5 move. We remain constructive on the company’s industry-leading experience and dining business (about 40% of sales), which we have viewed as being valued at around $25 per share, but still see enduring competitive pressures in the metasearch segment (45% of sales).