Analyst Justin Post of Bank of America Securities maintained a Buy rating on Expedia, with a price target of $211.00.
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Justin Post has given his Buy rating due to a combination of factors including Expedia’s strategic positioning and financial metrics. Despite a challenging second quarter for US travel, Expedia is well-positioned to benefit from any recovery in this sector, given its significant US point of sale exposure. The company has been proactive in cutting costs to maintain its EBITDA margins, which are expected to grow year-over-year.
Furthermore, Expedia’s valuation appears attractive, with discounted multiples compared to its future earnings and cash flows. The addition of new airline partners like Southwest and Ryanair is expected to support market share gains. Additionally, strong free cash flow and potential share buybacks could drive earnings per share growth. These factors, combined with a positive outlook for US consumer sentiment and potential stabilization in travel demand, underpin the Buy rating with a price objective of $211.
According to TipRanks, Post is a top 25 analyst with an average return of 23.5% and a 70.10% success rate. Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Alphabet Class C.