UPDATE: Morgan Stanley Maintains Underweight, Raises PT to $27 on Expedia

Morgan Stanley reiterates its Underweight rating on Expedia (NASDAQ: EXPE) and raises its price target to $27 from $25as it completes TripAdvisor spinoff.

Morgan Stanley notes, "We adjust our EXPE model to reflect TripAdvisor's spin. In-line with our SOTP valuation published on 11/23, we continue to value Expedia's OTA business at 5x 2012 EV / EBITDA implying a $27 PT. We believe EXPE shares will underperform relative to our coverage space and maintain our UW rating."

EXPE closed at $27.89 per share on Wednesday.