BTIG hiked Expedia Group Inc.'s (NASDAQ: EXPE) price target from $150 to $175 back in 2024, maintaining a solid Buy rating. This isn’t just a nod; it’s a bold stamp of confidence based on Expedia's impressive rebound post-pandemic. The stock has been rallying since early August, and this adjustment reflects the analysts' reassessment as they recognize the company's stronger-than-expected performance.
But let's not gloss over the numbers: despite that surge, EXPE still sits below its pre-pandemic valuations. Right now, it's trading at about 7 times EBITDA—a stark drop from the 10 times it commanded before COVID threw everything into chaos. The analyst is shouting from the rooftops that Expedia has become more resilient with better growth rates and profit margins than ever before.
Travel Sector Stability: A Double-Edged Sword for Expedia?
The travel sector is always a wild ride. After some shaky guidance cuts during recent earnings reports, many were left wondering about travel demand's sustainability. However, market checks following those bumpy updates showed signs of stability—or even an improvement—since July. That gives you some hope for what’s coming down the pipeline for Expedia this quarter.
Expedia's Long-Term Earnings: Solid Growth or Wishful Thinking?
BTIG isn’t just throwing out random numbers; they’re forecasting a compound annual growth rate (CAGR) exceeding 20% for EPS from 2024 to 2026. That’s big talk! They’re banking on strong free cash flow and consistent shareholder returns through buybacks to support that optimism.
The catch? TD Cowen recently switched its rating on EXPE from 'Buy' to 'Hold' due to concerns over B2C performance...
This paints a murky picture when you contrast it with Expedia's booming B2B segment, which saw $25 billion in bookings and crushed over 100 million room nights in 2023. Analysts like Truist Securities are being cautious too, slapping Hold ratings on their coverage while others like B. Riley stick with Buy based on those thriving business lines.