Shares of TripAdvisor Inc. climbed 15% in premarket trade Thursday despite a wave of cautiously optimistic notes from analysts. Analysts were mostly optimistic on the travel booking site's quarterly revenue growth but concerned about high costs and profitability. Pacific Crest maintained a sector perform rating on the stock. Cantor Fitzgerald maintained a hold rating but lowered its price target to $84. J.P. Morgan maintained a neutral rating and $75 target, while Raymond James reiterated a market perform rating but lowered estimates. TripAdvisor reported stronger-than-expected revenues late Wednesday and said it expected sales to grow in the high 20% range for fiscal 2015, however earnings per share fell slightly below expectations. Meanwhile, shares of rivals Expedia Inc. and Orbitz Worldwide Inc. also soared in pre-market trade after Expedia said it would buy Orbitz for $1.6 billion. Shares of TripAdvisor were on track to open around $77.60, the highest open since Nov. 4.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below