Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Monday, Mizuho (NYSE:MFG) Securities adjusted its outlook on Expedia Group Inc (NASDAQ:EXPE) shares, raising the price target to $195 from the previous $180, while keeping a Neutral stance on the stock. Currently trading at $202.37, near its 52-week high of $205.12, Expedia has shown remarkable momentum with a 55.66% return over the past six months. The new target reflects an increase in the firm’s confidence in Expedia’s financial performance, particularly its EBITDA forecast for fiscal year 2026. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value calculations.
The upgrade comes after a review of Expedia’s recent quarter, which showed the company’s effective implementation of its strategic initiatives across its brand portfolio. With an impressive gross profit margin of 89.46% and a market capitalization of $26.08 billion, the company demonstrates strong financial fundamentals. Room night growth surpassed market expectations, and Expedia is on track for EBITDA margin expansion in FY25, attributed to heightened efficiency. InvestingPro subscribers can access 12 additional key insights about Expedia’s financial health and growth prospects.
Expedia’s One-Key initiative is gaining momentum, contributing to the positive outlook. Additionally, Vrbo, the company’s vacation rental platform, is experiencing acceleration, while Hotels.com has returned to positive growth. These factors have led Mizuho to adopt a more constructive view on Expedia’s stock, despite acknowledging some near-term foreign exchange impacts.
The raised price target is based on a 10x multiple of the projected FY26 EBITDA, which is an increase from the previous 9.5x multiple. This adjustment brings Expedia’s valuation in line with its peers in the travel industry. Mizuho’s analysts highlighted their increased confidence in achieving the estimated $3.5 billion EBITDA for FY26, which underpinned the decision to lift the price target.
While maintaining the Neutral rating, Mizuho signaled a positive note, suggesting that if Expedia’s One-Key can consistently drive double-digit growth, the firm might become more bullish on the stock’s prospects. Trading at a P/E ratio of 22.61x and showing strong momentum, the stock has garnered significant attention. This outlook suggests a cautious optimism for Expedia’s future performance based on its current trajectory and market positioning. For comprehensive analysis including valuation models and growth projections, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Expedia Group Inc. has seen a series of upgrades in its stock price targets by various analyst firms. BMO Capital Markets raised its price target from $165 to $190, citing anticipated improvements in earnings due to ongoing cost efficiencies. TD Cowen also increased its price target from $176 to $215, following Expedia’s robust fourth-quarter performance marked by an increase in booked nights and gross booking value. Meanwhile, Benchmark analysts lifted their price target from $200 to $225, emphasizing the reinstatement of the company’s dividend and ongoing stock buyback program as positive developments.
Cantor Fitzgerald adjusted its outlook on Expedia, increasing the price target from $180 to $210, noting the company’s potential for outperformance if it successfully meets its 2025 targets. Lastly, Mizuho Securities raised its price target to $195 from the previous $180, recognizing the effective execution of the company’s strategy across its various brands. These adjustments reflect recent developments and analysts’ growing confidence in the company’s financial outlook. However, all firms maintain a neutral stance, waiting for further evidence of strategy execution before altering their ratings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.