Expedia, the Consumer Cyclical sector company, was revisited by a Wall Street analyst on August 8. Analyst Richard Clarke from Bernstein maintained a Hold rating on the stock and has a $210.00 price target.
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Richard Clarke’s rating is based on a combination of factors that reflect both positive developments and cautious outlooks for Expedia. The company’s recent strategic shift towards strengthening its core online travel agency operations has yielded positive results earlier than anticipated, with notable growth in its B2C segment and market share gains in accommodations and flights. Despite these achievements, the improvements in revenue and earnings per share were modest, and the upgrades to revenue and gross bookings were minimal, suggesting limited upside potential from the current position.
However, Clarke remains cautious due to the historical pattern of Expedia’s performance, where strong quarters have been followed by declines. While the recent quarter showed promising signs, such as increased room nights and EBITDA growth, there is uncertainty about whether this momentum will continue into the next quarter. Additionally, although the valuation metrics have improved, they are still in line with peers on an adjusted basis, leading Clarke to maintain a Hold rating as the stock’s potential for further gains appears limited.
According to TipRanks, Clarke is a 3-star analyst with an average return of 4.3% and a 52.41% success rate. Clarke covers the Consumer Cyclical sector, focusing on stocks such as Royal Caribbean, Airbnb, and Expedia.
In another report released on August 8, Barclays also maintained a Hold rating on the stock with a $197.00 price target.