Expedia's AI Integration And Efficient Tech To Propel Growth, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Oppenheimer analyst Jed Kelly maintains an Outperform rating on Expedia Group Inc (EXPE) and raises the price target from $135 to $175. Kelly predicts a 10% and 8% year-over-year increase in lodging bookings for FY24 and FY25, respectively. He highlights potential growth from tech migration, re-entering European markets, and advertising leverage. The analyst expects tech efficiencies, AI integration in customer service, and a significant stock repurchase program. He forecasts a 13% EBITDA CAGR from FY23E-FY25E, with 9% revenue growth and expanding gross margins. EXPE shares rose 2.69% to $149.41.
December 11, 2023 | 7:31 pm
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Oppenheimer analyst Jed Kelly is optimistic about Expedia's growth, citing increased bookings, tech and AI integration, and advertising leverage. He raised the price target to $175 and expects a 13% EBITDA CAGR over FY23E-FY25E.
The positive outlook from the analyst, including a raised price target and expected growth in bookings and EBITDA, is likely to instill confidence in investors and could lead to a short-term increase in EXPE's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100