UBS starts coverage of online travel sector with positive outlook

trivago NV

02/12/2021 14:25

** UBS starts coverage of the online travel sector with a
positive view on recovery and margin outlook
    ** Brokerage initiates Booking Holdings  BKNG.O  with a
"buy" rating and PT of $2,838 on increased direct business at
higher margins
    ** UBS launches coverage of Expedia  EXPE.O , Airbnb
 ABNB.O , Tripadvisor  TRIP.O  and trivago  TRVG.O  with
"netural" ratings   
    ** Brokerage says skeptical around long-term listings growth
at Airbnb, setting a PT of $176 - 2% lower than current share
price 
    ** "Longer term stays - while still elevated - are
moderating and city travel is returning; share is migrating back
to hotels" - UBS
    ** UBS says Expedia looks well-positioned to benefit from
the recovery, but questions around cost cuts and execution
remain; sets PT of $173
    ** Trivago coverage started with PT of $2.65, with UBS
saying growth trajectory beyond 2019 levels remains unclear
    ** Brokerage sets PT of $30 for Tripadvisor as concerns
around recovery of metasearch and departure of CEO create
uncertainty  
   ** YTD, TRVG, TRIP and BKNG down between 7.2% and 17.6%,
while ABNB and EXPE up 11.1% and 17.6%, respectively  
    

 (Reporting by Kannaki Deka in Bengaluru)
 ((Kannaki.Deka@thomsonreuters.com))