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Expedia Stock Leaps On Bullish Analyst Reactions to Earnings

"Investors are encouraged by [Expedia's] improving travel trends into more border re-openings and a record margin," Oppenheimer says.
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Expedia  (EXPE) - Get Expedia Group, Inc. Report shares jumped Friday as analysts reacted positively to stronger-than-expected profit and revenue numbers for the third quarter.

Expedia recently traded at $180.67, up 15%. That leaves it up 18% over the past three months.

“Investors are encouraged by improving travel trends into more border reopenings and a record margin quarter that implies solid execution on $750 million of cost-cutting initiatives,” wrote Oppenheimer analyst Jed Kelly.

He has a perform rating on the stock and didn’t provide a price target.

Wedbush analyst James Hardiman has an outperform rating on the shares and raised his price target to $185 from $180.

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“Our longer-term view on the [online travel agency] space in general and EXPE in particular is unchanged, as we believe that consumers will flock back to travel once they feel comfortable and safe doing so,” he wrote.

“We continue to believe EXPE embodies a compelling combination of exposure to the travel recovery, alternative accommodations growth, and substantial restructuring savings.”

As for the near term, “we expect to see the continuation of a turbulent recovery through the end of year and into 2022, although we are encouraged to see that the Delta-driven slowdown was fairly short lived,” Hardiman said.

Credit Suisse analyst Stephen Ju has an outperform rating and boosted his price target to $205 from $198.

“Gross bookings were below our expectations, but revenues and profitability were materially ahead, due to shorter booking windows and cost management,” he wrote. “Brand simplification, fixed cost savings initiatives and technology integrations are progressing well.”