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Investing.com - DA Davidson raised its price target on Expedia (NASDAQ:EXPE) to $218.00 from $174.00 on Friday, while maintaining a Neutral rating following the company’s second-quarter 2025 financial results. According to InvestingPro data, analyst targets for Expedia currently range from $160 to $290, with 6 analysts recently revising their earnings expectations upward.
The travel company reported second-quarter gross bookings growth of 5% year-over-year, with revenues increasing by 6% compared to the same period last year. Adjusted EBITDA grew 16%, with margins expanding 190 basis points year-over-year to 24.0%. InvestingPro analysis shows Expedia maintains impressive gross profit margins of 89.61% and trades at an attractive PEG ratio of 0.37, suggesting potential undervaluation relative to its growth prospects.
Expedia’s business-to-business (B2B) and advertising segments were highlighted as key growth drivers during the quarter, posting increases of 17% and 19% respectively. These segments benefited from their higher international exposure compared to the company’s business-to-consumer operations.
The business-to-consumer (B2C) segment showed more modest performance with gross bookings up just 1%, primarily due to softness in the U.S. market. Outside the United States, B2C business grew at high-single-digit rates.
DA Davidson noted that Expedia’s second-quarter results exceeded consensus expectations, with 2% upside versus consensus on gross bookings and revenues, and 6% upside on adjusted EBITDA.
In other recent news, Expedia has seen a series of positive developments following its recent earnings report. The company reported an increase in travel demand, particularly in the United States, which has prompted several financial firms to raise their price targets for the stock. Benchmark increased its price target to $265, maintaining a Buy rating, while BofA Securities raised its target to $240, also retaining a Buy rating. RBC Capital adjusted its price target to $200 with a Sector Perform rating, noting that Expedia’s second-quarter results were slightly better than expected. Piper Sandler raised its target to $190, maintaining an Underweight rating, as bookings and revenues surpassed market forecasts. UBS increased its price target to $209, highlighting strong international growth, particularly in Asia and Europe, within Expedia’s B2B segment. These adjustments reflect analysts’ responses to Expedia’s stronger-than-expected financial performance and growth prospects.
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