In a report released today, Scott Devitt from Stifel Nicolaus reiterated a Hold rating on Expedia (EXPE), with a price target of $135. The company’s shares closed yesterday at $138.21, close to its 52-week high of $139.77.
Devitt noted:
“We reiterate our Hold rating. Key Points Expedia reported total gross bookings growth of 11% y/y (FX-adj.) to $28.3B, below our 12% estimate though above the Street’s 9% estimate. Core OTA bookings of 11% were shy of our 12% estimate while Vrbo gross bookings of 2% were well below our expectations as the company continues to work through the brand and platform transition. Improvement was seen sequentially at Vrbo as the quarter progressed. Consolidated revenue of $3.2B grew 9% y/ y (12% FX-adj.), below our 13% estimate (above 9% consensus) as Vrbo was below our expectations. Total room nights grew 12% y/y, up from 9% growth last quarter while core OTA room nights stayed were up 12% y/y and Vrbo room nights remained steady at 8% y/y. Consolidated adj.”
According to TipRanks.com, Devitt is a top 100 analyst with an average return of 22.4% and a 72.1% success rate. Devitt covers the Technology sector, focusing on stocks such as Jumia Technologies AG, Uber Technologies Inc, and Eventbrite Inc.
Expedia has an analyst consensus of Moderate Buy, with a price target consensus of $150, which is an 8.5% upside from current levels. In a report issued on July 15, Morgan Stanley also maintained a Hold rating on the stock with a $135 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 $3.15 billion and net profit of $183 million. In comparison, last year the company earned revenue of $2.88 billion and had a net profit of $1 million.
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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.
