Goldman Sachs Initiates Coverage On HomeAway
Goldman Sachs is out with a research report on HomeAway, Inc. (NASDAQ: AWAY) and is initiating coverage with a Buy rating and a $48 price target.
In a note to clients, Goldman Sachs writes, "We initiate coverage of HomeAway with a Buy rating and six-month price target of $48, implying roughly 40% upside. We see HomeAway, a vacation rentals marketplace, as an opportunity for investors to get in on the ground floor of a new, emerging and large travel vertical. The vacation rentals market is $85 bn and fragmented, with barriers to entry that we believe are significant. HomeAway, the dominant player in this space, should benefit from scale and network effects. We believe that within the next few years, shares could potentially double as AWAY's addressable market is one-fourth the size of Priceline's while its market cap is only one-tenth the size."
Shares of AWAY lost $1.49 on Friday to close at $32.23.
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