NEW YORK (TheStreet) -- Buckingham Research initiated coverage on Expedia (EXPE) shares with a "neutral" rating and $75 price target on Friday.
The rating represents a potential downside from the company's $77.01 closing price yesterday.
The pessemistic outlook follows the announcement that the online travel company has agreed to purchase European car rental reservation company Auto Escape Group.
Must Read: Warren Buffett's 25 Favorite Stocks
TheStreet Ratings team rates EXPEDIA INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXPEDIA INC (EXPE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."