Nomura Securities Maintains a 'Neutral' on Expedia (EXPE); Raising PT to Reflect Upcoming TripAdvisor Spinoff
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Price: $324.47 -2.47%
Rating Summary:
22 Buy, 37 Hold, 2 Sell
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Today's Overall Ratings:
Up: 12 | Down: 20 | New: 20
Rating Summary:
22 Buy, 37 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 20 | New: 20
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Nomura Securities maintains a 'Neutral' on Expedia (NASDAQ: EXPE) price target raised from $29 to $32.50.
Nomura analyst, Brian Nowak, said, "Expedia today will hold its annual shareholder meeting where shareholders will vote on the proposed TripAdvisor spin-off. We expect the spin-off to be completed by the end of 2011, but a TripAdvisor when-issued market could develop within days of spin approval. While our initial TripAdvisor concerns were tied to Google’s meta-travel search build-out and the threat to TripAdvisor’s advertising revenue, it now appears the larger risk involves margin pressure from rising traffic acquisition costs. We value core Expedia at 5.5X 2013E EBITDA, or $20 per share. We value TripAdvisor at $12.50 per share, based on 8.0X 2013E EBITDA. Our new EXPE, pre-spin target price is $32.50 (from $29.00)."
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 $28.92 yesterday.
Nomura analyst, Brian Nowak, said, "Expedia today will hold its annual shareholder meeting where shareholders will vote on the proposed TripAdvisor spin-off. We expect the spin-off to be completed by the end of 2011, but a TripAdvisor when-issued market could develop within days of spin approval. While our initial TripAdvisor concerns were tied to Google’s meta-travel search build-out and the threat to TripAdvisor’s advertising revenue, it now appears the larger risk involves margin pressure from rising traffic acquisition costs. We value core Expedia at 5.5X 2013E EBITDA, or $20 per share. We value TripAdvisor at $12.50 per share, based on 8.0X 2013E EBITDA. Our new EXPE, pre-spin target price is $32.50 (from $29.00)."
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 $28.92 yesterday.
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