Tripadvisor sale of TheFork seen as accretive to valuation not outlook, says Jefferies
Key takeaways
- Jefferies raised its price target on Tripadvisor to $11 from $8.50, citing a higher-than-expected valuation for TheFork in the transaction.
- 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.
Tripadvisor sale of The Fork seen as accretive to valuation not outlook, says Jefferies Tripadvisor sale of The Fork seen as accretive to valuation not outlook, says Jefferies Proactive uses images sourced from Shutterstock Proactive Wed, June 17, 2026 at 12:28 AM GMT+7 2 min read AXP TRIP Tripadvisor Inc (NASDAQ:TRIP) has agreed to sell its European restaurant reservations platform The Fork 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.