Bank of America Reiterates Neutral, $33 Target on Expedia

Bank of America maintains its Neutral rating and $33 price target on Expedia Inc. (NASDAQ: EXPE) as Trip Advisor spinoff is a potential catalyst for the company.

BofA says, “Yesterday, Expedia shareholders approved the TripAdvisor spin-off and both TripAdvisor and Expedia will begin to trade “when-issued” on 12/7. TripAdvisor is a high growth, high margin asset with a defensible lead in the advertisingsupported travel vertical that may be undervalued within the larger and much slower growing Expedia. We estimate EXPE's current stock price of ~$29 is valuing TripAdvisor at 7.5-10.5x 2013E EBITDA assuming a 5.0-6.4x multiple for the remainder of EXPE.”

EXPE closed at $28.81 per share on Tuesday.