2023-06-22 10:24:46 ET
Expedia ( NASDAQ: EXPE ) was one of the top gainers in the S&P 500 Index in early Thursday morning trading after B. Riley Securities started off coverage on the online travel stock with a Buy rating.
Analyst Naved Khan said the positive view on Expedia ( EXPE ) is tied to the company's leading position across key markets and improved execution that is leading to market share gains.
The bullish view on Expedia ( EXPE ) also hinges on tailwinds from tech stack changes, B2B momentum, and potential margin expansion driven by cost leverage and marketing efficiencies.
On a valuation check, Khan noted that EXPE trades at 6.1X the EV/EBITDA estimate and with a 11.5X PE ratio vs the 12.0X sector average.
B Riley Securities assigned a price target to EXPE of $160 to represent almost 50% upside potential for the stock.
Shares of Expedia Group ( EXPE ) rose 2.23% to $107.26 vs. the 52-week trading range of $82.39 to $124.95.
More on Expedia
- Expedia: Undervalued Heading Into Travel Season
- More articles on Expedia from Seeking Alpha analysts
- Growth metrics on Expedia
- Seeking Alpha's Quant Rating for Expedia
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Expedia rallies after B. Riley issues Buy rating ahead of summer travel season