Expedia, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Justin Post from Bank of America Securities maintained a Buy rating on the stock and has a $240.00 price target.
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Justin Post has given his Buy rating due to a combination of factors including the anticipated modest upside in Expedia’s third-quarter performance, largely driven by the strength of Vrbo. The U.S. travel data has shown signs of improvement, with Booking’s U.S. night growth accelerating, which bodes well for Expedia as a significant portion of its revenue is domestic. Additionally, app data indicates strong user trends for Vrbo, and Hotels.com has maintained stability, suggesting a positive outlook for bookings.
Furthermore, Justin Post notes that despite challenging comparisons in the fourth quarter, there is an expectation of revenue growth in line with bookings and an increase in EBITDA margins. The valuation of Expedia is considered attractive, with potential for further expansion if nights growth can align more closely with peers. While there are risks such as potential declines in B2C revenue and competition from Booking and Airbnb, the overall outlook remains positive, particularly with easing comparisons in the first half of 2026 and improvements in Vrbo.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EXPE in relation to earlier this year.