UPDATE: Benchmark Raises Expedia's PT
According to a research report published this morning, Benchmark has increased Expedia's (NASDAQ: EXPE) PT from $33 to $40.
In the report, Benchmark said, "Expedia (EXPE-Hold, PT From $33 to $40) reported strong 1Q12 results, with gross bookings up 15% to $8.42 billion, well ahead of consensus at $7.95 billion, driven by a 5% sequential acceleration in hotel room-night growth. Despite a modest decline in revenue margin, net revenue grew 12% y/y to $816 million, $24 million ahead of consensus. Adjusted EBITDA also surprised significantly to the upside, growing 24% y/y to $102 million despite ongoing investment in the technology platform, leading to adjusted EPS of $0.26 vs. consensus at $0.15 and our estimate of $0.17. However, despite upside in 1Q, management reiterated its FY12 EBITDA guidance of mid-single digit growth, which we view as likely conservative, although we do expect a material deceleration in 2Q12."
Expedia is currently trading at $41.79.
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