Deutsche Bank Downgrades Expedia (EXPE) to Hold; Investments + TripAdvisor Headwinds = Ratings Cut
Tweet Send to a FriendGet Alerts EXPE Hot Sheet
Price: $60.64 +2.55%
Rating Summary:
12 Buy, 23 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
12 Buy, 23 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade EXPE Now!
Deutsche Bank downgraded Expedia (NASDAQ: EXPE) from Buy to Hold. PT lowered from $33 to $25.
Deutsche analyst says, "While Expedia is still positioned to benefit from secular online travel trends and remain a strong distribution channel for suppliers, we are moving to the sidelines given higher investment spend in both its core and media businesses and pressure on TripAdvisor by Google Places (Nasdaq: GOOG). As such, we expect the deleveraging in the model and for the stock to be range bound until it can demonstrate that it could regain leverage."
"For 1Q11, we expect gross bookings growth of 12%Y/Y to $7.4bn and revs/OIBA/EPS of $792mn/$141mn/$0.27. For FY 2011, we expect bookings growth of 12% and revenues/OIBA/EPS of $3.62bn/$873mn/$1.82 vs. $3.64bn/$931mn/$1.97 previously. For 2012, we expect bookings growth of 9% and revenues/OIBA/EPS of $3.90bn/$893mn/$1.91 vs. $3.95bn/$1,022mn/$2.22 previously."
For more ratings news on Expedia click here and for the rating history of Expedia click here.
Shares of Expedia closed at $25.69 yesterday, with a 52 week range of $18.30-$29.85.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Deutsche analyst says, "While Expedia is still positioned to benefit from secular online travel trends and remain a strong distribution channel for suppliers, we are moving to the sidelines given higher investment spend in both its core and media businesses and pressure on TripAdvisor by Google Places (Nasdaq: GOOG). As such, we expect the deleveraging in the model and for the stock to be range bound until it can demonstrate that it could regain leverage."
"For 1Q11, we expect gross bookings growth of 12%Y/Y to $7.4bn and revs/OIBA/EPS of $792mn/$141mn/$0.27. For FY 2011, we expect bookings growth of 12% and revenues/OIBA/EPS of $3.62bn/$873mn/$1.82 vs. $3.64bn/$931mn/$1.97 previously. For 2012, we expect bookings growth of 9% and revenues/OIBA/EPS of $3.90bn/$893mn/$1.91 vs. $3.95bn/$1,022mn/$2.22 previously."
For more ratings news on Expedia click here and for the rating history of Expedia click here.
Shares of Expedia closed at $25.69 yesterday, with a 52 week range of $18.30-$29.85.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- May e-Commerce Trends Look Good (GOOG) (AMZN) (EBAY) (EXPE)
- KeyBanc Downgrades Sanderson Farms (SAFM) to Hold
- BofA/Merrill Lynch Downgrades Genomic Health Inc. (GHDX) to Neutral
Create E-mail Alert Related Categories
DowngradesRelated Entities
Deutsche Bank
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
