Swiss multinational financial holdings company Credit Suisse has initiated coverage of travel website provider TripAdvisor Inc. (TRIP). (See also: Vetr Ups Rating of TripAdvisor Shares.)

StreetInsider reported that Credit Suisse provided TRIP shares with a price target of $51.00. Also, Credit Suisse issued a Neutral recommendation for TRIP shares.

Credit Suisse research analyst Paul Bieber pointed out that TRIP likely will face many challenges as it searches for ways to expand its global reach. "While we are positive on TRIP's leadership position at the top of the marketing funnel for travel, it faces multiple near-term headwinds. … As a result, we expect investor sentiment to remain mixed to negative until revenue per hotel shopper growth turns positive and the instant book business model transition gains greater traction," Bieber noted, according to StreetInsider.

TRIP shares closed at a price of $51.31 on Jan. 10. The shares feature a 52-week price high of $78.00 and a 52-week price low of $45.63.

TRIP's Hotel Revenue Declines in 3Q16

TRIP looks ready to revamp its hotel segment, which is reflected in the company's earnings report for the third quarter of 2016.

In 3Q16, TRIP's hotel financial results declined year to year. The company noted its hotel segment represented 76 percent of its total revenue in the quarter.

Comparatively, TRIP's non-hotel segment revenue rose 35 percent year to year in 3Q16. The business also stated that user reviews and opinions increased 50 percent year to year during the time frame.

TRIP said in a company statement that it will focus on accelerating its hotel revenue growth in 2017. Furthermore, the business indicated that it is dedicated to finding innovative ways to deliver strong returns to its shareholders. "We are still early days at demonstrating that we are plugging the monetization leak and capturing its expected financial benefits, though we continue to see nice leading indicators of success. We are moving fast, we are learning and improving, and we believe that we are on the best path to maximize long-term growth and shareholder value creation," TRIP pointed out in a prepared statement. 

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