BMO Capital analyst Brian Pitz has maintained their neutral stance on EXPE stock, giving a Hold rating on February 7.
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Brian Pitz has given his Hold rating due to a combination of factors impacting Expedia’s competitive positioning and financial outlook. The primary reason for maintaining a Market Perform rating is the modest growth projections for bookings in 2025, which are slightly below market expectations when considering foreign exchange impacts. Additionally, while Vrbo benefits from an increase in short-term urban listings, it faces stiff competition from established players like Airbnb and Booking.com, both in the US and internationally.
Further challenges are noted with Hotels.com, whose growth is currently underwhelming and may require significant marketing investment to gain momentum, potentially impacting EBITDA margins negatively. The competitive landscape in Europe, particularly with Booking.com’s strong presence, adds another layer of complexity for Expedia. Moreover, higher-than-expected marketing expenditures could further constrain margin expansion. Despite these challenges, the increased target price reflects some confidence in cost efficiencies and potential margin improvements.
In another report released on February 7, DBS also maintained a Hold rating on the stock with a $160.00 price target.
EXPE’s price has also changed dramatically for the past six months – from $113.240 to $202.370, which is a 78.71% increase.