Oppenheimer Believes EXPE Won’t Stop Here

By Austin Angelo

Oppenheimer analyst Jed Kelly reiterated a Buy rating on Expedia (NASDAQ: EXPE) today and set a price target of $145. The company’s shares closed yesterday at $129.48, close to its 52-week high of $133.55.

Kelly said:

“This week, we hosted two full-day days of well attended investor meetings with EXPE’s investor relations team and came away incrementally positive in the company’s ability to drive global online travel share gains. Conversations were consistent with recent public commentary, with topics focusing around key medium- term initiatives including: 1) HomeAway’s eCommerce transition; 2) the multi- year cloud investment; 3) room-night trends following the Orbitz migration; and 4) direct marketing investments to increase global share. We remain confident in EXPE’s product scale and demand generation competencies overcoming near-term competitive headwinds. Leaving our estimates and $145 price target unchanged.”

According to TipRanks.com, Kelly is a 5-star analyst with an average return of 22.2% and a 74.2% success rate. Kelly covers the Technology sector, focusing on stocks such as LendingClub Corp, TripAdvisor Inc, and Bankrate Inc.

Currently, the analyst consensus on Expedia is Strong Buy and the average price target is $144.20, representing an 11.4% upside.

In a report issued on March 3, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $175 price target.

Based on Expedia’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $2.09 billion and quarterly net profit of $79.46 million. In comparison, last year the company earned revenue of $1.7 billion and had a GAAP net loss of $12.54 million.

Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EXPE in relation to earlier this year.

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Expedia, Inc. is an online travel company. The company provides travel products and services to leisure and corporate travelers, including travel agencies, tour operators, travel supplier direct websites and call centers, consolidators and wholesalers of travel products and services, large online portals and search websites, certain travel meta-search websites, mobile travel applications, social media websites, as well as traditional consumer eCommerce and group buying websites. It also offers travel and non-travel advertisers access to a potential source of incremental traffic and transactions through its various media and advertising offerings on its transaction-based websites. The company operates through two business segments: Leisure and Egencia. The Leisure segment provides a full range of travel and advertising services to worldwide customers through a variety of brands including: Expedia.com and Hotels.com in the United States and localized Expedia and Hotels.com websites. The Egencia segment provides managed travel services to corporate customers in North America, Europe, and the Asia Pacific region. Expedia was founded on August 9, 2005 and is headquartered in Bellevue, WA.