Benchmark Co. analyst Daniel Kurnos has maintained their bullish stance on EXPE stock, giving a Buy rating today.
Daniel Kurnos has given his Buy rating due to a combination of factors that reflect both challenges and opportunities for Expedia. Despite missing consensus on several key performance indicators, Expedia’s adjusted EBITDA remained solid, which provides a level of stability in its financial outlook. The company faces headwinds in the domestic travel market, with softer-than-expected growth in areas like Vrbo and a return to negative growth for Hotels.com, primarily due to foreign exchange impacts. However, the presence of a new CFO and plans to utilize 2025 as a review year suggest that Expedia is positioning itself for a stronger performance in 2026, assuming macroeconomic conditions are favorable.
Additionally, while the current environment poses challenges, the stock is trading at a relatively low multiple of 5x 2026E EBITDA, and even a reduced target multiple results in a price target of $215 per share. This indicates potential upside for investors as the company focuses on profitable growth and cost controls, which have already led to a $25 million EBITDA beat. The advertising segment’s 20% growth also stands out as a positive aspect, suggesting areas of strength that could support future performance improvements.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $211.00 price target.
Based on the recent corporate insider activity of 59 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.