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Investing.com - Cantor Fitzgerald has reiterated its Neutral rating on Expedia (NASDAQ:EXPE) with a price target of $220.00, according to a research note released Wednesday. The stock, currently trading at $208.04, has shown remarkable strength with a 56.5% return over the past year and is approaching its 52-week high of $213.
The firm’s analysis follows Expedia’s second-quarter results, highlighting a notable divergence in fourth-quarter guidance patterns among online travel agencies (OTAs). The company maintains impressive gross profit margins of nearly 90% and commands a market capitalization of $25.7 billion.
Cantor Fitzgerald observed that while specific fourth-quarter outlooks weren’t provided by any OTAs, the guidance implied by Expedia and Airbnb suggests a deceleration in FXN bookings growth, whereas Booking Holdings (NASDAQ:BKNG)’ commentary points to some acceleration.
The firm noted that Wall Street estimates reflect this dynamic for both room nights and bookings, with harder year-over-year comparisons in the fourth quarter of 2024 partially explaining the expected deceleration in Q4 2025.
Cantor Fitzgerald concluded that compared to 2019 and 2022 seasonality, fourth-quarter 2025 Street estimates for Booking Holdings appear aggressive, while estimates for Airbnb and Expedia seem achievable. InvestingPro analysis reveals 14 additional key insights about Expedia’s performance and valuation, available in the comprehensive Pro Research Report.
In other recent news, Expedia reported strong second-quarter financial results, which have led to several analysts raising their price targets for the company. DA Davidson noted a 5% year-over-year growth in gross bookings and a 6% increase in revenues, with adjusted EBITDA growing by 16% and margins expanding to 24.0%. Bernstein raised its price target to $210, acknowledging Expedia’s market share gains in accommodation and flight bookings despite a challenging U.S. consumer environment. Benchmark increased its target to $265, citing a rise in overall travel demand since July, especially in the U.S. RBC Capital also raised its target to $200, highlighting that Expedia’s results were better than anticipated compared to competitors like Airbnb and Booking. Piper Sandler adjusted its target to $190 following results that surpassed market expectations, with bookings 2% above and revenues 7% higher than forecasts. These developments reflect a positive reception from the investment community regarding Expedia’s recent performance.
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