The firm cited that Expedia is gaining share of the global travel market and executing at a high level and building scale, given recent acquisitions of Wotif, Travelocity, Decolar and its pending acquisition of Orbitz (OWW).
Analysts also highlighted the sale of its 62% stake in eLong (LONG) last Friday, stating, "We believe strong execution continues and eLong sale makes Expedia a cleaner, more profitable story."
However, they acknowledged the risks around declining hotel commission rates and increased sales and marketing expense.
In Tuesday's pre-market trading, shares of Expedia are declining 0.08% to $112.91.
TheStreet Ratings team rates EXPEDIA INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXPEDIA INC (EXPE) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."