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Analysts appear to be toasting the prospect of trading on Trivago, ahead of its recently announced decision to IPO. The Germany-based hotel search engine intends to place itself on NASDAQ in the US under the TRVG symbol. Class A shares in the company will be sold to the public by its existing management team, whilst the remaining Class B shares that are owned by Expedia Inc will remain with the global travel group. One of the leading tech stock analyst groups, SIG, says Trivago’s marketing expertise around TV and search differentiating its ability to penetrate markets and drive growth and has allowed the company to create a moat in a highly competitive space. Yet one of the biggest challenge for a post-IPO Trivago, SIG claims, is if it can show any “leverage on ad spend” (it currently splashes out a massive 88% of revenue on marketing) without impacting its strong growth in revenue. |
