From Financial Modeling Prep: 2024-12-18 09:10:00

Expedia (NASDAQ:EXPE) saw a 3% rise in shares after BofA Securities upgraded the stock to Buy, setting a new price target of $221. Analysts cited positive travel trends, achievable growth targets, and a discounted valuation compared to peers as reasons for the upgrade.

RevPAR data and credit card transactions indicate early signs of recovery in U.S. travel, supporting a more optimistic outlook for 2025. Expedia’s expected 10% EBITDA growth for 2025, along with favorable comparisons to previous years, position the company for financial improvement.

The appointment of a new CEO, enhanced messaging, and improved execution are seen as potential catalysts for attracting long-term investors. Despite trading at a lower valuation than Booking Holdings, Expedia’s 8x EV/EBITDA multiple for 2025 highlights its relative undervaluation compared to peers with similar EBITDA growth expectations.



Read more at Financial Modeling Prep:: Expedia Upgraded to Buy at BofA, Shares up 3%