Will This Price Target Increase Help Expedia (EXPE) Stock Today?
NEW YORK (TheStreet) -- Jefferies raised its price target for Expedia (EXPE) - Get Expedia Group, Inc. Report to $89 from $85 on Friday, maintaining its "hold" rating.
Shares of Expedia were gaining 5% to $84.73 in morning trading.
The analyst firm also raised its EPS estimates for the online travel-booking company through 2015. Jefferies now expects Expedia to report earnings of $4.16 a share for 2014, up from its previous guidance of $3.95 a share. The firm raises its 2015 EPS estimates to $4.89 a share from $4.87.
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"Expedia reported another Beat qtr driven by strong hotel room nights growth (+24% Y/Y with ~4% from Travelocity) and air tickets growth (+30% Y/Y with ~18% from Travelocity)," the Jefferies US Internet Team wrote. "Ad & Media revenue grew nicely too (+29% Y/Y with robust growth from trivago). However, rev per air ticket and rev per room night declined -7% Y/Y and -2% Y/Y, respectively, on discounting, loyalty programs and investment in inventory and products."
