UPDATE: Oppenheimer Initiates Coverage On HomeAway On Multiple Positive Factors

In a report published Thursday, Oppenheimer analyst Manish Hemrajani initiated coverage on HomeAway, Inc. (NASDAQ: AWAY) with an Outperform rating and $37.00 price target.

In the report, Oppenheimer noted, "As part of our expansion of Internet travel coverage, we initiate coverage of HomeAway Inc. (AWAY), the world's largest vacation rental website, with an Outperform rating and $37 PT. We believe AWAY with its market leadership in a unique and growing segment of the travel ecosystem, innovation and execution online, favorable demographics, geographic expansion and strong management team is well positioned to benefit from a strong travel macro and a secular online shift in travel. We are enthused by AWAY's attractive business model, listing expansion potential and pricing leverage with positive impact from tiered/bundled pricing. AWAY currently trades at EV/sales of 4.8x, EV/EBITDA of 19.3x and P/E of 42.3x on FY15E, vs. its peer group median at 4.8x/18.1x/36.1x respectively."

HomeAway closed on Wednesday at $30.58.