Expedia (EXPE) Checks Show Positive Tends in April - Cantor

Cantor Fitzgerald maintained a Buy rating on Expedia (NASDAQ: EXPE) with a price target of $82. Analyst Naved Khan said April checks point to a generally good start for Q2.

"Our checks show continued strong growth in paid-clicks for Expedia.com in April, along with healthy growth in Hotels.com (when normalizing for tough Y/Y comp), indicating that 2Q is off to a good start. We continue to view a broader rollout of the Expedia Traveler Preference (ETP) program and ramp of the Travelocity partnership as positive catalysts for the stock in 2014 and are reiterating our BUY rating and $82 PT," said Khan.

"U.S. paid-click data (from comScore) shows strong growth in click volume to Expedia.com sites (~50% of total revenues) in April (+262 Y/Y), consistent with the growth trends we saw over the past few quarters (Exhibit 1). While we do not look at the absolute numbers, we believe that the elevated level of paid click activity is indicative of higher ad spending on this channel to capitalize on an improved traffic conversion/ROI," continued.

For an analyst ratings summary and ratings history on Expedia click here. For more ratings news on Expedia click here.

Shares of Expedia closed at $71.02 yesterday.

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