Deutsche Bank Downgrades HomeAway (AWAY) to Hold

Deutsche Bank downgraded HomeAway (NASDAQ: AWAY) from Buy to Hold with a price target of $38.00 (from $37.00). Analyst Lloyd Walmsley said the buyout price as low.

"We see the ~$38 buyout price as undervaluing the optionality at AWAY, though we recognize 1) implementing a transactional model carries execution risk, 2) Expedia’s know-how mitigates that risk and 3) brings more distribution, 4) being part of a larger entity provides flexibility and 5) competition in the space is not decreasing. We increase our 2016 EBITDA estimates on AWAY reflecting 2H16 implementation of a fee model and roll out 2017 estimates for $221M in EBITDA. We increase our TP to $38 (from $37) reflecting the approximate offer price, and we downgrade our rating to Hold as the risk/reward appears somewhat balanced," said Walmsley.

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

Shares of HomeAway closed at $32.04 yesterday.

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