Raymond James analyst Justin Patterson noted that for the stock to climb from current levels, he would need to see evidence that high-teens to low-20% "room night growth" is sustainable.
Patterson contends that could be challenging given competition and increasing macro uncertainty.
"With shares having already narrowed the EV/EBITDA gap vs. (PCLN) to 2-year record levels (~2x turn discount) and our sum-of-the-parts math suggesting fair value, we believe it is appropriate to step to the sidelines," Patterson wrote.
Shares of Expedia were higher during mid morning trading on Thursday.
Retail's downturn giving you the blues? Jim Cramer has a list of retailers that are currently oversold, giving investors a leg up one of the market's most volatile sectors.