Expedia: Analysts Turned Bullish after Its Strong Q4 Earnings



Analysts’ bullish recommendations

Expedia (EXPE) could be an intriguing investment. Most analysts have turned bullish on the stock. Most analysts raised their target price after the company’s fourth-quarter results on February 7. Since Expedia’s quarterly results, four research firms have increased their target price, while one research firm cut its target price.

Among the bullish firms, Credit Suisse (CS) raised the target price to $150 from $145, while Barclays (BCS) increased the target price to $155 from $145. RBC Capital and Ascendiant Capital’s new target prices are $169 and $152, respectively—up from $163 and $148. In contrast, D.A. Davidson cuts its target price on the stock to $161 from $164.

The analysts polled by Reuters have provided a consensus ~2.12 rating and a consensus “buy” recommendation on the stock. Among the 33 analysts covering Expedia, 22 recommended a “strong buy” or “buy,” while 11 recommended a “hold.”

Based on analysts’ one-year forward target price of $147.53, Expedia has a potential upside of 15.4% from its current price of $127.87. The company’s current target price is slightly higher than its target of $146.27 on February 6.

Since Expedia’s fourth-quarter earnings were released, Boeing has received an upward revision to the estimates for its EPS in 2019 and 2020. The mean estimate for the 2019 EPS has risen to $6.55—compared to the estimate of $6.48 on February 6. The 2020 EPS estimate has improved to $7.86 from $7.70.

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Peers’ ratings and target prices

Analysts are bullish on Booking Holdings (BKNG), which received “buy” ratings from most of the analysts tracking the stock. The one-year target price for Booking Holdings is $2,172.34, which signifies a potential upside 15.7%.

Other online travel agencies (XWEB) including TripAdvisor (TRIP) and Ctrip.com International (CTRP) have received a “hold” recommendation from most of the analysts. TripAdvisor has a one-year target price of $57.04, which suggests a potential downside of 2.8% from its current price of $58.67. Ctrip has a target price of $34.32, which suggests an upside of 6.9% from the current market price of $32.10.


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