Skip to main content

Market Overview

Expedia's Slow Progress Is Better Than No Progress

Share:
Expedia's Slow Progress Is Better Than No Progress

Pacific Crest has maintained its Overweight rating on Expedia Inc (NASDAQ: EXPE), despite the company reporting mixed quarterly results and guided 2017 EBITDA below estimates.

Recap

Rating Justification

“Reiterate Overweight on an underappreciated rising take-rate commentary and room night growth mean reversion thesis,” analyst Brad Erickson wrote in a note.

The analyst believes the company’s 2017 EBITDA outlook of 10 to 15 percent year-over-year was in line with expectations, despite being below the Street.

Erickson is also encouraged by the uptick in take rates and a reacceleration in room night growth to 16 percent from 11 percent.

That said, the analyst is surprised by HomeAway miss, which appears to have come from a faster roll-off of subscription revenue rather than a bookings shortfall. Erickson believes HomeAway "undergoing several quarters of ad spending will do little for the 2018 EBITDA upside narrative."

But, the analyst stuck to its $160 price target on the shares on improving take rates and potential upside to mean reversion.

“With the 2017 guide out of the way and management talking down 1H, we think the bar is set low enough and remain buyers of the stock,” Erickson added.

At last check, shares of Expedia were down 0.27 percent to $122.92.

Latest Ratings for EXPE

DateFirmActionFromTo
Mar 2022Deutsche BankInitiates Coverage OnBuy
Feb 2022Morgan StanleyMaintainsEqual-Weight
Feb 2022CitigroupMaintainsNeutral

View More Analyst Ratings for EXPE

View the Latest Analyst Ratings

 

Related Articles (EXPE)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings Long Ideas News Guidance Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
SEDGB of A SecuritiesMaintains411.0
PTLOPiper SandlerMaintains28.0
AOUTLake StreetMaintains26.0
RAPTPiper SandlerMaintains52.0
OCXLake StreetMaintains6.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com