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Collins Stewart Initiates Coverage on Expedia (EXPE) with a Buy

November 23, 2009 4:31 PM EST
EXPE Hot Sheet
Rating Summary:
    9 Buy, 16 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Collins Stewart initiates coverage on Expedia Inc. (Nasdaq: EXPE) with a Buy. Price target $31

Collins analyst says, "EXPE's model is the most comprehensive of the on-line travel agents (OTA), featuring disclosed and opaque pricing, merchant and agency sales, value, luxury, leisure and corporate travel offerings, and transaction and on-line advertising. Despite a 213% gain YTD, we believe the likely recovery in travel, traction for its new agency model in Europe, continuation of strong 'Net ad business, materially higher exposure to hotel bookings, and market share gains are not fully reflected in the share price. We believe that as the travel metrics (esp. ADRs) start improving, EXPE will see a material rise in revenue growth and margin. EXPE's increase should be much greater than other OTAs due to its leverage to hotel bookings and its merchant business model."

To see all the upgrades/downgrades on shares of EXPE, visit our Analyst Ratings page.

Expedia, Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally.

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