Expedia stock price target raised to $209 from $182 at UBS on margin growth

Published 08/08/2025, 12:24
Expedia stock price target raised to $209 from $182 at UBS on margin growth

Investing.com - UBS raised its price target on Expedia (NASDAQ:EXPE) to $209.00 from $182.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock is currently trading at $187.61, with analysis suggesting it may be undervalued based on its Fair Value assessment. Six analysts have recently revised their earnings estimates upward for the upcoming period.

The travel company reported accelerated room nights growth of 7% year-over-year, matching Airbnb’s nights and seats booked growth during the same quarter. The performance exceeded expectations primarily due to stronger international exposure within Expedia’s B2B segment, which grew 17% year-over-year with particular strength in Asia and Europe. This growth has contributed to the company’s impressive 89.54% gross profit margin and overall revenue growth of 5.57%.

Expedia’s B2C gross bookings increased 1% year-over-year, while Hotels.com bookings declined as the platform continues to work through impacts from its migration and loyalty program changes.

Following these results, Expedia raised its fiscal year outlook, now projecting gross bookings and revenue growth of 3-5% year-over-year, up from its previous guidance of 2-4%. The company also increased its adjusted EBITDA margin expansion forecast to 100 basis points, compared to the previous range of 50-100 basis points. InvestingPro rates Expedia’s overall financial health as "GREAT" with a score of 3.13 out of 5, with particularly strong marks in profitability metrics.

UBS decreased its gross bookings and revenue forecasts for 2026 and 2027 by 2% and 3% respectively, but raised its adjusted EBITDA estimates by 11% for 2026 and 14% for 2027, citing Expedia’s demonstrated ability to manage down its cost base.

In other recent news, Expedia reported better-than-expected financial results for the second quarter of 2025. The company’s earnings per share reached $4.24, surpassing the forecasted $3.96. Additionally, Expedia’s revenue exceeded projections, coming in at $3.79 billion compared to the anticipated $3.7 billion. These strong earnings results highlight the company’s robust financial performance. In related developments, BofA Securities raised its price target for Expedia from $211 to $240, maintaining a Buy rating on the stock. The revised price target is based on higher estimates and improved growth prospects. BofA’s analysis reflects a blend of future earnings and EBITDA multiples, indicating confidence in the company’s top-line growth. These updates provide investors with key insights into Expedia’s recent developments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.