SunTrust Robinson analyst Naved Khan maintained a Buy rating on Expedia (NASDAQ: EXPE) today and set a price target of $180. The company’s shares closed yesterday at $118.55.
Khan said:
“We maintain a BUY/$180 PT following analysis of 3Q data, which indicate flat/modestly-higher room night growth Q/Q, along with signs of progress on growth initiatives. Our analysis suggests that despite easy Y/Y comps for 3Q and improving conversions (based on our analysis), a meaningful pick-up in room night will likely be held back by weak meta-search and EXPE’s focus on honing its ad efficiency (by leveraging cloud-based analytics). We see solid progress on mgt’s push to expand selection, with our analysis of data sample suggesting ~50-60K hotel listings additions (consistent with 1H18). The net impact on room nights growth: Our proprietary analysis indicates 0-200bps Q/Q pickup in room nights for EXPE’s global brands (Expedia, Hotels.com) in 3Q, implying 12-14% Y/Y reported room night growth for 3Q (Cons. is ~14%, we think Buy-side is lower).”
According to TipRanks.com, Khan is a 5-star analyst with an average return of 20.8% and a 71.0% success rate. Khan covers the Technology sector, focusing on stocks such as Endurance International, Wix.com Ltd, and trivago NV.
Expedia has an analyst consensus of Strong Buy, with a price target consensus of $153.84, representing a 29.8% upside. In a report released yesterday, Evercore ISI also initiated coverage with a Buy rating on the stock with a $140 price target.
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Based on Expedia’s latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $2.88 billion and net profit of $1 million. In comparison, last year the company had a net profit of $352 million.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock.
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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 segments: Core OTA, trivago, HomeAway, and Egencia.
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