RBC Capital lowered the firm’s price target on Expedia to $140 from $155 and keeps a Sector Perform rating on the shares after its Q1 results. The company’s broader business is growing with B2B standing out, but its Vrbo business is displaying issues which may be more difficult to fix than management is letting on, the analyst tells investors in a research note. Expedia generates a lot of cash and is committed to growing margins over the long term, but higher marketing dollars may not be able to fix Vrbo’s traffic issues, the firm added.
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