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On Friday, Benchmark analyst Daniel Kurnos revised the price target for Expedia Group Inc. (NASDAQ:EXPE) to $215 from the previous $225, while keeping a Buy rating on the stock. The adjustment follows Expedia’s financial results, which fell short of consensus expectations on key performance indicators (KPIs), except for a solid adjusted EBITDA of $1.84 billion. The company also revised its revenue and gross bookings projections downward for the year, citing current trends in the domestic travel sector. According to InvestingPro data, 11 analysts have recently revised their earnings expectations downward for the upcoming period, though the company maintains impressive gross profit margins of 89.5%.
Expedia’s performance showed mixed results, with Vrbo achieving modest growth despite an easy comparison from the previous year, while Hotels.com experienced a downturn in growth, primarily due to unfavorable foreign exchange rates. Despite these challenges, the company has demonstrated strong financial resilience, generating $13.79 billion in revenue over the last twelve months. The appointment of a new CFO and a challenging domestic travel forecast suggest that Expedia may use 2025 as a year to reassess and reposition for stronger performance in 2026, provided macroeconomic conditions remain stable. For deeper insights into Expedia’s financial health and growth potential, InvestingPro subscribers can access comprehensive analysis and additional metrics.
Kurnos noted that while investors value profitable growth, the revised guidance should maintain some support for the stock price, as EBITDA estimates from analysts are not expected to change significantly despite the lowered top-line guidance. He also pointed out that prior to today’s events, Expedia’s shares were trading at 5 times the estimated 2026 EBITDA, and even with a reduced target multiple to 7 times, this supports a $215 per share price target.
The lowered revenue and bookings guidance reflects the uncertainties in the domestic travel environment, which Expedia intends to navigate through strategic review and planning for the next year. The company aims to emerge stronger in 2026, assuming the broader economic conditions do not deteriorate. Despite the challenges, Benchmark’s maintained Buy rating indicates a belief in Expedia’s long-term potential for recovery and growth.
In other recent news, Expedia Group Inc. has been the focus of multiple analyst assessments following its first-quarter earnings report. The company’s earnings revealed a slight underperformance in bookings and revenue, which marginally missed expectations by 1%, though EBITDA surpassed forecasts by 10%. Analysts have responded with varied adjustments to Expedia’s stock price target. Cantor Fitzgerald raised its target to $170, maintaining a Neutral rating, while TD Cowen lowered its target to $170, also holding a Neutral stance. Citi adjusted its target to $177, citing a slowdown in U.S. travel demand, and maintained a Neutral rating as well. In contrast, Piper Sandler downgraded Expedia’s rating to Underweight and cut the price target to $135, expressing concerns about future challenges in the U.S. market. Goldman Sachs made a notable reduction in its price target to $5, maintaining a Neutral rating, reflecting a cautious outlook. These developments highlight the mixed sentiment among analysts regarding Expedia’s future performance amid fluctuating travel demand.
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