After Guggenheim and Citigroup gave Expedia (NASDAQ: EXPE) a Buy rating last month, the company received another Buy, this time from SunTrust Robinson. Analyst Naved Khan maintained a Buy rating on Expedia today and set a price target of $185. The company’s shares opened today at $127.96.
Khan noted:
“We find the announced transaction to be largely inline with EXPE’s Feb disclosure regarding its preliminary discussion with Inc (LEXEA, NR). We view the final terms as an incremental positive for EXPE, given the net accretion to EPS from reduced share count. While Expedia will no longer be a controlled company, Barry Dillers’ sizable voting control following the transaction is likely to maintain the status quo. Terms of transaction. Each outstanding share of LEXEA series A common stock and LEXEA Series B common stock will be converted in the the right to own 0.36 shares of Expedia common stock. We note that the final terms are approximately at the mid-point of the 0.35-0.37 range for share exchange ratio disclosed in EXPE’s in Feb. this year.”
According to TipRanks.com, Khan is a top 100 analyst with an average return of 22.4% and a 78.9% success rate. Khan covers the Technology sector, focusing on stocks such as Wix.com Ltd, Yext Inc, and GoDaddy.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Expedia with a $154.24 average price target, implying a 20.5% upside from current levels. In a report issued on April 10, Guggenheim also maintained a Buy rating on the stock with a $162 price target.
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The company has a one-year high of $139.77 and a one-year low of $105.87. Currently, Expedia has an average volume of 1.54M.
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Expedia Group, Inc. is an online travel company, which engages in the provision of travel products and services to leisure and corporate travelers. It operates through the following business segments: Core OTA, trivago, HomeAway, and Egencia.
