Positive Outlook for Expedia: Buy Rating Supported by Traffic Growth and Valuation Discount

Analyst Jake Fuller from BTIG maintained a Buy rating on Expedia (EXPE – Research Report) and keeping the price target at $210.00.

Jake Fuller has given his Buy rating due to a combination of factors that suggest a positive outlook for Expedia’s stock. Despite Expedia’s significant exposure to the US market, which has been considered a weak spot, recent trends indicate an acceleration in site traffic and receipt data. This improvement is particularly notable given the deceleration observed in other online travel agencies.
Furthermore, the data supports a potential 5-6% growth in room nights for the second quarter, which exceeds the consensus expectations. The typical seasonal pattern and favorable foreign exchange conditions also suggest reasonable growth for the second half of the year. Additionally, Expedia is trading at a historically wide multiple discount, which, combined with fading estimate risks and firming fundamentals, strengthens the case for a Buy rating.

EXPE’s price has also changed slightly for the past six months – from $191.010 to $173.380, which is a -9.23% drop .