Bank of America Upgrades Expedia, Sees More Upside in 2025
Expedia Stock Soars on Bullish Outlook for 2025
Bank of America Upgrades Online Travel Giant, Citing Improving Travel Trends and Cost-Cutting potential
Expedia (EXPE) shares surged in premarket trading Wednesday after bank of America upgraded teh online travel stock to “buy” from ”neutral” and substantially increased its price target. The bank now sees Expedia shares reaching $221, representing a potential upside of over 22% from Tuesday’s closing price.Analyst Justin Post highlighted several key factors driving his bullish outlook, including encouraging signs of recovery in the U.S. travel market.
“revenue per available room (RevPAR) and Bank of America aggregated credit and debit card data show early signs of improving trends for US travel,” Post wrote in a note to clients. He pointed to a 3.6% increase in U.S. RevPAR for the fourth quarter to date, suggesting a potential “normalization” of leisure spending.Moreover, Post noted “modest” improvements in air and hotel spending based on Bank of america card data. This, he believes, indicates the market might potentially be “moving past a trough.”
Looking ahead to 2025, Post expressed optimism surrounding Expedia’s new CEO, Ariane Gorin, who took the helm in May 2024. He also cited potential deals with mobility companies in the ride-sharing and restaurant delivery space as catalysts for growth.
Post also sees opportunities for Expedia to streamline its operations and reduce costs.
“Expedia’s costs vs its closest peer Booking remain elevated in the technology and marketing lines, and EBITDA margins are lower,” he wrote. “With Booking announcing further cost-cutting actions into 2025, we think there could be incentive for Expedia to find additional cost savings around tech and content (AI driven coding efficiencies), customer service (AI), and marketing efficiencies (ad creative, targeting).”
While Post’s upgrade is among the most bullish on Wall Street, the majority of analysts remain neutral on Expedia. However, the average price target of $184.94 still implies over 2% upside potential from current levels.
expedia shares gained approximately 3% in premarket trading following the upgrade. Year-to-date,the stock has risen around 19%.
Expedia Stock Soars on Bullish Outlook for 2025
Bank of America Upgrades Online Travel Giant, Citing Improving Travel Trends and Cost-Cutting Potential
Expedia (EXPE) shares surged in premarket trading Wednesday after Bank of america upgraded the online travel stock to “buy” from “neutral” and substantially increased its price target. The bank now sees Expedia shares reaching $221, representing a potential upside of over 22% from Tuesday’s closing price.
Analyst Justin Post highlighted several key factors driving his bullish outlook, including encouraging signs of recovery in the U.S. travel market. “revenue per available room (RevPAR) and Bank of America aggregated credit and debit card data show early signs of improving trends for US travel,” Post wrote in a note to clients.He pointed to a 3.6% increase in U.S.RevPAR for the fourth quarter to date, suggesting a potential “normalization” of leisure spending.
Moreover, Post noted “modest” improvements in air and hotel spending based on Bank of America card data. This, he believes, indicates the market might possibly be “moving past a trough.”
Looking ahead to 2025, Post expressed optimism surrounding Expedia’s new CEO, Ariane Gorin, who took the helm in May 2024. He also cited potential deals with mobility companies in the ride-sharing and restaurant delivery space as catalysts for growth.
Post also sees opportunities for Expedia to streamline its operations and reduce costs. “Expedia’s costs vs. its closest peer Booking remain elevated in the technology and marketing lines, and EBITDA margins are lower,” he wrote. “With Booking announcing further cost-cutting actions into 2025, we think there could be incentive for Expedia to find additional cost savings around tech and content (AI driven coding efficiencies), customer service (AI), and marketing efficiencies (ad creative, targeting).”
While Post’s upgrade is among the most bullish on Wall Street, the majority of analysts remain neutral on Expedia. Though,the average price target of $184.94
still implies over 2% upside potential from current levels.
Expedia shares gained approximately 3% in premarket trading following the upgrade. Year-to-date, the stock has risen around 19%.