Benchmark Raises Price Target on Expedia (EXPE) But Still Sees Weakness in Europe
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Price: $324.17 -0.64%
Rating Summary:
22 Buy, 37 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
Rating Summary:
22 Buy, 37 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
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Benchmark is reaffirming its Hold rating on shares of Expedia (NASDAQ: EXPE), while raising its price target from $31 to $34.
The company is expected to report its Q4 results on February 9 following the closing bell. The firm notes management will likely report continued weakness throughout parts of Europe as Google (Nasdaq: GOOG) and Amazon (Nasdaq: AMZN) both reported it.
An analyst at Benchmark comments, "Given the spin-off of TripAdvisor, improved growth at Expedia will likely have to come from diversification away from the core Expedia brand. The Expedia brand accounts for roughly 46% of total revenue and, in our view, is a mature, mid-single digit growth business. While Venere/Hotels.com should continue to add to growth, Expedia’s affiliate network and business brand Egencia may have the greatest near-term opportunity, but currently only account for 15% of revenues."
For Q4, the firm forecasts EPS of $0.54 and EBITDA of $175 million. Benchmark also estimates EPS of $2.70 for FY11.
Looking ahead, the firm estimates 7 percent booking, 8 percent revenue growth and a 10 bps increase in revenue margins for fiscal 2012. Earnings are forecasted to total $2.80 per share.
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 $34.04 yesterday.
The company is expected to report its Q4 results on February 9 following the closing bell. The firm notes management will likely report continued weakness throughout parts of Europe as Google (Nasdaq: GOOG) and Amazon (Nasdaq: AMZN) both reported it.
An analyst at Benchmark comments, "Given the spin-off of TripAdvisor, improved growth at Expedia will likely have to come from diversification away from the core Expedia brand. The Expedia brand accounts for roughly 46% of total revenue and, in our view, is a mature, mid-single digit growth business. While Venere/Hotels.com should continue to add to growth, Expedia’s affiliate network and business brand Egencia may have the greatest near-term opportunity, but currently only account for 15% of revenues."
For Q4, the firm forecasts EPS of $0.54 and EBITDA of $175 million. Benchmark also estimates EPS of $2.70 for FY11.
Looking ahead, the firm estimates 7 percent booking, 8 percent revenue growth and a 10 bps increase in revenue margins for fiscal 2012. Earnings are forecasted to total $2.80 per share.
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 $34.04 yesterday.
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