UPDATE: Deutsche Bank Raises PT on Expedia on High Hotel Growth

In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Expedia EXPE, and raised its price target from $70.00 to $80.00. Deutsche Bank noted, “Expedia posted its highest hotel room night growth rate in several years in 4Q, with 33% overall and 49% in international. Excluding eLong, we estimate that international hotel volume growth has accelerated from mid-teens in 2Q12 to around 40% in 4Q, a function of: 1) the conversion rate improvement, 2) increased marketing expense and 3) share gains from traditional agencies (but not Booking.com). Expedia noted the increased competitive environment in the US OTA market heading, and guided conservatively for EBITDA growth in 2013. EXPE remains our preferred OTA name, our rating remains Buy.” Expedia closed on Tuesday at $67.50.