Baird starts Expedia at Outperform with turnaround in progress

Baird analyst Michael Bellisario last night initiated coverage of Expedia (EXPE) with an Outperform rating and $225 price target Expedia’s business model has been transformed recently and “disruption has occurred,” but the turnaround story is in process, the analyst tells investors in a research note. The firm says that while execution risks and competitive threats exist, expectations are low and the stock’s valuation is discounted. A share re-rating is possible when Expedia’s growth accelerates and margins improve, contends Baird.