DBS analyst Amanda Tan has maintained their neutral stance on EXPE stock, giving a Hold rating today.
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Amanda Tan has given her Hold rating due to a combination of factors, including Expedia’s current market position and competitive pressures. While Expedia is one of the largest online travel agencies, the company is eclipsed by its competitor, Booking Holdings, which possesses higher EBITDA margins due to its geographic operations largely in Europe, where smaller hotels offer more pricing power compared to Expedia’s U.S.-centric operations. The focus on acquiring high lifetime value customers is a positive long-term strategy, though it may initially impact margins due to increased marketing spend.
Additionally, despite positive growth in B2B sectors and upward revisions in revenue guidance, the overall travel market is expected to face pressures from macroeconomic uncertainties and intensifying competition, which could dampen Expedia’s performance. Given these challenges and the need for significant investment to scale operations and compete with industry leaders, the recommendation remains at a Hold with a target price of USD 160, reflecting a cautious stance in light of the company’s current valuation and competitive landscape.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $215.00 price target.