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Investing.com - BofA Securities raised its price target on Expedia (NASDAQ:EXPE) to $240.00 from $211.00 on Friday, while maintaining a Buy rating on the online travel company’s stock. The company, currently trading at $187.61 with a market cap of $23.85B, has demonstrated strong performance with a 59.75% return over the past year.
The price target increase reflects BofA’s higher estimates and multiple expansion, based on a 50-50 blend of 18x 2026 GAAP P/E (up from 16x previously) and 9x 2026 EBITDA (up from 7.5x previously) due to improved top-line growth prospects. According to InvestingPro analysis, the stock appears undervalued, with six analysts recently revising their earnings estimates upward.
BofA noted that Expedia’s relatively new CEO had strong performance managing the company’s B2B business, and sees an opportunity to improve B2C performance through better product offerings and less marketing reliance, potentially closing a significant multiple gap to peers.
The firm also highlighted that U.S. travel activity has improved recently, with airlines and hotels suggesting further improvement potential in the fall shoulder season.
BofA’s analysis indicates a favorable stock setup for Expedia given these industry trends and the company’s positioning.
In other recent news, Expedia Inc. reported its financial results for the second quarter of 2025, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $4.24, surpassing the anticipated $3.96. Additionally, Expedia’s revenue reached $3.79 billion, outperforming the projected $3.7 billion. This strong financial performance has drawn attention from investors and analysts alike. While specific analyst actions were not detailed, the results highlight a positive trajectory for the company. These developments indicate a robust quarter for Expedia, marking a significant achievement in its financial performance. The company’s recent earnings report is a key point of interest for stakeholders.
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