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Wednesday - Truist Securities increased its price target on Expedia Group Inc (NASDAQ:EXPE) shares to $175.00 from the previous target of $163.00, while keeping a Hold rating on the stock. The adjustment followed the travel company’s fourth-quarter earnings, with analysts citing a mix of company-specific strengths and broader economic concerns. According to InvestingPro data, seven analysts have recently revised their earnings estimates upward, with price targets ranging from $163 to $290.
Analysts at Truist Securities have revised their financial forecasts for Expedia based on the company’s recent performance and future prospects. The 2025 Adjusted EBITDA estimate has been updated to $3.12 billion, up from $3.05 billion, although the EPS projection has been slightly lowered to $13.81 from $14.21. Additionally, Truist Securities introduced their 2026 Adjusted EBITDA and EPS projections at $3.32 billion and $15.87, respectively. InvestingPro analysis reveals impressive gross profit margins of 89.46% and steady revenue growth of 6.64% in the last twelve months.
The new price target of $175 is derived from applying an 11.0x target multiple, which is a slight reduction from the previous multiple, to the firm’s 2026 EPS estimates. The adjustment reflects a balance between positive developments within Expedia’s control and less favorable U.S. macroeconomic and leisure travel trends. Currently trading at a P/E ratio of 17.04x, InvestingPro’s Fair Value analysis suggests the stock may be undervalued, with additional insights available in the comprehensive Pro Research Report.
Despite the sluggish U.S. leisure trends, which are expected to continue downward, Truist Securities acknowledged several positive factors for Expedia. These include improved market share in the vacation rental segment, advancements in B2B and international markets, cost reductions, and strategic changes implemented by the company’s new management team.
Expedia’s stock price target has been raised based on these considerations, with Truist Securities maintaining a cautious outlook as reflected in the Hold rating. The firm’s analysis indicates that while Expedia is making internal progress, external economic factors remain a challenge for the travel industry giant.
In other recent news, Expedia Group has seen several noteworthy developments. S&P Global Ratings assigned a ’BBB’ issue-level rating to Expedia’s proposed senior unsecured notes, which the company plans to use for various corporate purposes, including debt refinancing and acquisitions. This rating aligns with the company’s stable outlook and strong market presence. Additionally, BMO Capital Markets raised its price target for Expedia to $190, maintaining a Market Perform rating. This adjustment is based on improved cost efficiencies, although potential increases in marketing expenditures could impact profitability. Similarly, DA Davidson increased its price target to $205, citing robust fourth-quarter performance with significant growth in both B2C and B2B segments. The company’s revenues and adjusted EBITDA for the quarter exceeded expectations, showcasing its capacity to outperform market forecasts. In leadership news, Fortive (NYSE:FTV) Corporation announced Mark Okerstrom as its new Chief Financial Officer, effective March 2025. Okerstrom, formerly of Expedia Group, brings extensive experience in finance and strategic growth to his new role. These recent developments highlight a dynamic period for Expedia and its associated entities.
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