Expedia (EXPE – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Justin Post from Bank of America Securities reiterated a Buy rating on the stock and has a $250.00 price target.
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Justin Post has given his Buy rating due to a combination of factors highlighting Expedia’s strong performance and future potential. The company reported a robust fourth quarter, with bookings and revenue exceeding market expectations. This performance was supported by improvements in key areas such as its Vrbo and Hotels.com platforms. Despite some challenges like foreign exchange impacts, the overall outlook for 2025 remains optimistic, with expectations of continued revenue and EBITDA growth.
Moreover, the new management team appears to be executing well, which is reflected in the improved brand performance. The conservative full-year outlook is seen as prudent given past volatility and a changing leadership structure. With easy comparisons ahead and signs of recovery in the U.S. travel sector, Justin Post believes that Expedia’s valuation is attractive. The potential for closing the valuation gap with competitors through better execution further supports the Buy recommendation.
Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Pinterest. According to TipRanks, Post has an average return of 23.3% and a 67.68% success rate on recommended stocks.
In another report released today, HSBC also upgraded the stock to a Buy with a $215.00 price target.