In a report released today, Kevin Kopelman from TD Cowen maintained a Hold rating on Expedia, with a price target of $256.00.
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Kevin Kopelman has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Expedia’s performance. The company showed significant growth in the third quarter, particularly in its B2B segment, which outpaced the B2C segment. This growth was accompanied by a reduction in total cost of revenue and advertising costs, contributing to improved margins.
Despite these positive developments, there are factors that temper the enthusiasm for a stronger rating. The transaction take rate is on a downward trend, which could impact future profitability. Additionally, while the company has raised its earnings per share estimates, the overall market conditions and competitive landscape may present challenges. These mixed signals have led to a Hold rating, suggesting that investors may want to wait for more consistent performance before considering a stronger position in the stock.
In another report released today, Piper Sandler also upgraded the stock to a Hold with a $250.00 price target.