SunTrust Bullish On HomeAway Inc. Shares

On Wednesday, analysts at SunTrust initiated coverage on HomeAway Inc AWAY with a Buy rating and $40 price target.
Bob Peck outlined drivers for the Buy rating:

• HomeAway has strong financials with revenues growing 30 percent and EBITDA margins of roughly 27 percent.; Peck estimates revenues can reach $644 million in 2016.
• HomeAway is a market leader in in online vacation rentals in the United States, many countries in Europe, and Asia Pacific.
• Homeaway has a large total addressable market of which it has only penetrated 17 percent of the hotel travel industry. Peck Stated, “the online booking of vacation rentals represents only 24% of bookings vs ~40% for overall hotel travel in the US & Europe. This provides a large revenue opportunity for HomeAway as more bookings are done online.”

Shares of HomeAway recently traded at $33.46 up 0.33 percent Wednesday morning.