Tripadvisor sale of TheFork seen as accretive to valuation not outlook, says Jefferies

Tripadvisor Inc (NASDAQ:TRIP) has agreed to sell its European restaurant reservations platform TheFork to American Express for $700 million in cash, a move that Jefferies says simplifies the company’s structure but does not fully offset longer-term pressure in its core business. The deal, which Jefferies noted had been widely anticipated following Tripadvisor’s earlier indication that it was exploring strategic alternatives for TheFork, is expected to close before the end of fiscal 2026. The net proceeds are expected to be broadly in line with the gross sale price.

Tripadvisor said it may deploy the capital toward share repurchases, debt reduction, or acquisitions in its Experiences segment. Jefferies raised its price target on Tripadvisor to $11 from $8.50, citing a higher-than-expected valuation for TheFork in the transaction.

Shares traded hands at about $12.50 on Tuesday afternoon. The broker estimates the sale price implies roughly 2.

5x 2027 estimated revenue and about 19x 2027 EBITDA, representing a premium to typical small- and mid-cap internet sector valuations. Under a sum-of-the-parts framework, Jefferies now assigns approximately $4 per share of value to TheFork, $4 to Viator, and about $3 to the Hotels business, which remains the company’s largest segment. Despite the higher valuation, Jefferies maintained an ‘Underperform’ rating on the stock, pointing to what it describes as a weakening profit trajectory in Tripadvisor’s remaining operations.

The firm expects ongoing declines in the Hotels business to weigh on consolidated growth, partially offset by continued expansion in Viator, the company’s experiences marketplace. Jefferies forecasts a mid-single-digit decline in Tripadvisor’s pro forma EBITDA through 2028, citing a projected roughly 20% annual decline in Hotels EBITDA alongside approximately 25% annual growth in Experiences EBITDA. It also flagged risk around the company’s fiscal 2026 outlook, which it says implies a significant second-half ramp in revenue and profitability.

Tripadvisor Inc (NASDAQ:TRIP) has agreed to sell its European restaurant reservations platform TheFork to American Express for $700 million in cash, a move that Jefferies says simplifies the company’s structure but does not fully offset longer-term pressure in its core business. The deal, which Jefferies noted had been widely anticipated following Tripadvisor’s earlier indication that it was exploring strategic alternatives for TheFork, is expected to close before the end of fiscal 2026. The net proceeds are expected to be broadly in line with the gross sale price.

Tripadvisor said it may deploy the capital toward share repurchases, debt reduction, or acquisitions in its Experiences segment. Jefferies raised its price target on Tripadvisor to $11 from $8.50, citing a higher-than-expected valuation for TheFork in the transaction.

Shares traded hands at about $12.50 on Tuesday afternoon. The broker estimates the sale price implies roughly 2.

5x 2027 estimated revenue and about 19x 2027 EBITDA, representing a premium to typical small- and mid-cap internet sector valuations. Under a sum-of-the-parts framework, Jefferies now assigns approximately $4 per share of value to TheFork, $4 to Viator, and about $3 to the Hotels business, which remains the company’s largest segment. Despite the higher valuation, Jefferies maintained an ‘Underperform’ rating on the stock, pointing to what it describes as a weakening profit trajectory in Tripadvisor’s remaining operations.

The firm expects ongoing declines in the Hotels business to weigh on consolidated growth, partially offset by continued expansion in Viator, the company’s experiences marketplace. Jefferies forecasts a mid-single-digit decline in Tripadvisor’s pro forma EBITDA through 2028, citing a projected roughly 20% annual decline in Hotels EBITDA alongside approximately 25% annual growth in Experiences EBITDA. It also flagged risk around the company’s fiscal 2026 outlook, which it says implies a significant second-half ramp in revenue and profitability.

Tripadvisor Inc (NASDAQ:TRIP) has agreed to sell its European restaurant reservations platform TheFork to American Express for $700 million in cash, a move that Jefferies says simplifies the company’s structure but does not fully offset longer-term pressure in its core business. The deal, which Jefferies noted had been widely anticipated following Tripadvisor’s earlier indication that it was exploring strategic alternatives for TheFork, is expected to close before the end of fiscal 2026. The net proceeds are expected to be broadly in line with the gross sale price.

Tripadvisor said it may deploy the capital toward share repurchases, debt reduction, or acquisitions in its Experiences segment. Jefferies raised its price target on Tripadvisor to $11 from $8.50, citing a higher-than-expected valuation for TheFork in the transaction.

Shares traded hands at about $12.50 on Tuesday afternoon. The broker estimates the sale price impli