Expedia (EXPE) Gets a Buy Rating from SunTrust Robinson


In a report released today, Naved Khan from SunTrust Robinson maintained a Buy rating on Expedia (EXPE), with a price target of $188. The company’s shares closed last Monday at $131.65.

Khan observed:

“We also see potential for $70-100M in incremental upside to our 2021 EBITDA/nFCF ests driven by a) elimination of certain data center costs post migration and b) mgt’s focus on realizing platform synergies in the organization. Growth benefits from focused supply expansion, prospects for increased share buyback powered by increasing FCF and attractive valuation at ~10x CY20 FCF keep us positive on EXPE. Spend are in nFCF Margin. Normalized FCF (nFCF) margin has improved each year since 2016, when the cloud initiative was announced and we expect 300bps in cumulative margin gains by 2020 vs. 2016 (see Ex. 1), largely reflecting the benefits from cloud savings and operational efficiency.”

According to TipRanks.com, Khan is a 5-star analyst with an average return of 18.0% and a 71.3% 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 Moderate Buy, with a price target consensus of $158.57, a 21.1% upside from current levels. In a report issued on September 9, Guggenheim also maintained a Buy rating on the stock with a $162 price target.

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Expedia’s market cap is currently $18.74B and has a P/E ratio of 32.50. The company has a Price to Book ratio of 4.53.

Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EXPE in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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.

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