Credit Suisse Raises Expedia Price Target On Strong Earnings

Following the company’s third quarter results, analysts at Credit Suisse raised the price target on shares of Expedia Inc. EXPE from $85 to $87; remain Neutral on the stock.

For the third quarter Expedia reported strong results, highlights from the quarter include:

• Gross bookings beat.
• Hotel room night growth of 24 percent.
• Stronger than expected volume; leisure revenue better than expected.

Dean Prissman stated, “While we remain on the sidelines given continued concerns that competitive pressures from Booking's US entry are still to come and that the effect of Hotwire's challenges could be amplified in seasonally larger quarters, we were encouraged to see the strong room night growth, which in part puts to rest some uncertainty that tough comps from platform enhancements will have a negative impact.”

Shares of Expedia recently traded at $83.80 up 3.8 percent.