TripAdvisor (TRIP) is crystallizing its value after striking a deal to sell TheFork for $700 million in cash, Wedbush Securities said in a Tuesday note.

On Monday, the company said it has struck a put option to sell its online restaurant reservation and management platform in Europe to American Express (AXP).

"The deal crystallizes value that we believe the market was systematically underpricing, removes a source of valuation uncertainty in our SOTP model," the report said. SOTP refers to sum-of-the-parts valuation methodology.

The deal also strengthened its balance sheet and capital allocation optionality to return to shareholders and/or deploy against the fast-growing Experiences segment, the note said.

The $700 million proceeds against the company's market value of about $1.5 billion is a "transformational" balance sheet event, the report added.

Wedbush raised its price target to $20 from $19 and kept its outperform rating.

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