Cantor Assigns Buy On Expedia Following Earnings
In a research report issued today, Cantor analyst Naved Khan assigned a Buy rating on Expedia (NASDAQ:EXPE) with a $92 price target, following the company’s earnings release for the third-quarter.
Khan commented: “EXPE’s solid results and mgt’s commentary not only show that business continues to perform well, they should also alleviate investors’ concerns about the potential impact on travel from ebola and a macro-challenged Europe. Mgt. maintained its FY:14 outlook for 16-19% growth in EBITDA while opportunistically investing $15-20M into growth initiatives for eLong and Trivago in 4Q and in the face of 300-400bps in FX headwind. We’re maintaining our BUY and $92 PT to reflect: a) our view that healthy organic growth in room nights is sustainable (driven by ETP, product improvements, etc.), b) Trivago’s strong growth and synergies with core Expedia, and c) the stock’s attractive valuation at ~8x CY:15E EBITDA.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Naved Khan has a total average return of 21.1% and a 63.3% success rate. Khan has a 10.9% average return when recommending EXPE, and is ranked #244 out of 3354 analysts.