In a note out Monday, FBR thinks third quarter trends look favorable for Expedia EXPE.
Some of the highlights noted:
- The form sees 25% room night growth for EXPE versus 23% in June, accompanied by healthy ADR acceleration
- Look for EXPE's domestic ticket volume growth ramped from 39% in June to 41% in July
- July trends point to domestic bookings growth for the quarter of around 30%
FBR also noted that a recent change on Market Perform-rated TripAdvisor TRIP meta path appears to favor EXPE, which looks to be gaining share on the platform, and that could be a late August to September tailwind.
FBR has a Buy rating on Expedia with a $95.00 price target.
Sum of parts from FBR: We base our $95 price target on an SOTP analysis valuing the core business at $80 (9x EBITDA), Trivago at $9 (3x 2015 revenue), and eLong-Travelocity at $6.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.