NEW YORK (TheStreet) -- Shares of Expedia Inc. (EXPE) are higher by 1.53% to $110.35 at the start of trading on Monday morning, after the online travel booking agency was upgraded to "buy" from "hold" at Deutsche Bank this morning.
The firm said it raised its rating on Expedia as it believes the company is consolidating the industry and will be able to continue to grow over the next several quarters.
"We see a path for Expedia to reach $200/share over the next five years as it continues to execute on its core, extracts revenue and cost synergies from its acquisitions and rolls up the tier-2 OTA space with limited competition," Deutsche Bank said in an analyst note.
"We see Expedia adding new hotel supply driving room night growth and implementing more advanced bid-for-placement systems to improve monetization," the note continued.
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 some important positives, 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."