Analysts’ rating on Expedia (EXPE) suggests that the stock could be an intriguing choice for investors. Analysts’ average target price on the stock reflects a massive upside potential in the company’s share prices.
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Expedia has received a consensus “buy” recommendation from the analysts polled Reuters. Approximately 73% of the 33 analysts provided a bullish rating, while 27% provided a “hold.” Given analysts’ one-year forward target price of $152.32, the stock has a potential upside of 18.8% from its current market price of $128.23.
What’s driving this optimism?
Expedia’s back-to-back quarters of strong bottom-line results are making analysts optimistic about its growth prospects. The company’s bottom-line results have beat analysts’ consensus estimates in the last five quarters.
Analysts are optimistic about Expedia’s growth prospects due to the strong global travel demand environment mainly in the United States. Analysts think that a healthy job market and a steady increase in wages are driving the travel demand in the domestic market.
Expedia’s sustained focus on enhancing its product portfolio, designing mobile-centric products, and marketing initiatives should boost its user base. Due to Expedia’s strong global presence, the company is well positioned to benefit from the rising online travel booking demand.
Analysts have a mixed stance on most of Expedia’s peers in the online travel agency (IYW) space. TripAdvisor (TRIP) has received a consensus “hold” recommendation, while Booking Holdings (BKNG) has received a consensus “buy” recommendation from the analysts polled by Reuters. Analysts’ average target prices of $56.14 and $2,015.71 on Expedia and Booking Holdings reflect potential upsides of 7.1% and 11.5%, respectively, over the next year.
Ctrip.com International (CTRP) mainly received “buy” recommendations from the analysts. However, Ctrip.com International is still expected to fall 1.6% in the next year.