HSBC upgrades Expedia to buy, lifts target on stock
Investing.com -- HSBC upgraded Expedia Inc (NASDAQ:EXPE) to Buy from Hold on “encouraging” trends across its leisure, B2B, advertising, and international businesses. HSBC also raised its price target on the stock to $215 from $19 on operational efficiency and productivity gains.
HSBC noted that Expedia’s Vrbo unit showed strong momentum in the fourth quarter, with system room night growth of 11.6% year-on-year, driving a 12.5% rise in lodging gross bookings. B2B revenue climbed 20.6% year-on-year, significantly outpacing the B2C segment, while advertising revenue grew 17.6%.
The bank lifted its 2025-27 free cash flow estimates by around 3%, citing sustained lodging demand, stable airline ticket margins, and robust B2B and advertising revenue growth. It also highlighted Expedia’s ability to leverage first-party data for AI-driven customer targeting as a key long-term advantage.
Downside risks include weaker consumer demand, rising competition, regulatory challenges, and higher-than-expected tech investments, HSBC said.
Related Articles
HSBC upgrades Expedia to buy, lifts target on stock
U.S. warns of potential sanctions on Rwandan, Congolese officials amid conflict
Schaeffler AG outlook revised to negative on weak profit, cash flow
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
No relevant data is available