Rising travel demand benefits Expedia, but analyst warns EBITDA…

Rising travel demand benefits Expedia, but analyst warns EBITDA…


  • DA Davidson Analyst Tom White reiterated a Neutral rating on shares of Expedia Group Inc EXPERIENCE and lowered the target price to $109 from $121.
  • The analyst told Expedia The 1Q results were mixed compared to the consensuswith revenue slightly above and EBITDA light.
  • The analyst believes the travel aggregator continues to benefit from robust underlying consumer demand for travel, and its first-quarter results were boosted by growth in international and metro/urban travel and the reopening of Asia.
  • The analyst noted that EXPE released encouraging details on the early results of its recently completed migration of its Hotels.com platform to the Expedia brand’s tech stack.
  • Although it will still be a few months before the full benefits in terms of conversion rates, speed of operation and lower costs from temporarily running redundant platforms are fully realized, Hotels.com’s rapidly improving performance seems to set a good precedent for what investors could expect, said the analyst.
  • The analyst hopes that the recent tech stack reshuffle will not only be Expedia’s last major overhaul in this space, but will also be a key ingredient in its attempt to narrow its EBITDA margin deficit versus its closest competitor.
  • price action: EXPE shares trade 4.40% higher at $93.10 on the latest check Friday.


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