NEW YORK (TheStreet) -- Shares of Expedia (EXPE) are gaining 0.05% to $107.68 in morning trading on Wednesday after analysts at Barclays initiated coverage of the company with an "overweight" rating and a price target of $125.
"Expedia has been the travel name to own the past 12 months and that is likely to continue," analysts said.
The firm cited that consolidation and M&A have been front and center in travel as Expedia has grown through deals.
The company agreed to buy competitor Orbitz Worldwide (OWW) for about $1.34 billion in February, Bloomberg reported.
Overall, the travel sector is hitting an interesting inflection points along its natural maturation curve, analysts noted. Growth has remained at levels higher than many analysts were predicting however, competition in the sector continues to intensify.
Separately, 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 several positive factors, 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."