In a report released on November 7, Richard Clarke from Bernstein maintained a Hold rating on Expedia, with a price target of $210.00.
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Richard Clarke’s rating is based on a combination of factors that highlight both positive developments and lingering concerns for Expedia. The company has shown strong performance in recent quarters, with significant growth in both B2C and B2B segments, and an impressive improvement in margins. This indicates that Expedia is executing well on its strategic initiatives, leading to raised guidance for future revenue and margin expansion.
However, despite these positive indicators, Clarke remains cautious due to the stock’s current valuation, which is at a premium compared to its peers like Booking Holdings. Additionally, there are uncertainties about the impact of AI on the role of online travel agencies, which could affect Expedia’s long-term prospects. These factors contribute to the decision to maintain a Hold rating, as the potential risks balance out the current positive momentum.
Clarke covers the Consumer Cyclical sector, focusing on stocks such as Hyatt Hotels, TripAdvisor, and Airbnb. According to TipRanks, Clarke has an average return of 3.4% and a 51.92% success rate on recommended stocks.
In another report released on November 7, RBC Capital also maintained a Hold rating on the stock with a $260.00 price target.