Nomura Securities Maintains a 'Neutral' on Expedia (EXPE); Q1 Preview
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Price: $324.63 +0.14%
Rating Summary:
22 Buy, 37 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
22 Buy, 37 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Nomura Securities maintains a 'Neutral' on Expedia (NASDAQ: EXPE) price target lowered from $38 to $37.
Analyst, Brian Nowak, said, "EXPE has underperformed the S&P 500 by ~850bp since 4Q:11 earnings (on 2/9/12) and is roughly in line with the market year-to-date. We believe EXPE must deliver on its 2012 guidance (mid-single-digit adjusted EBITDA growth) and likely generate positive earnings revisions for the stock to outperform. Our cross-visit analysis shows that Expedia.com’s competition and threat of commoditization continues growing. It is hard to see how Expedia.com can generate a substantial increase in conversion, unless it can develop a stickier customer base. Expedia will report 1Q results on Thursday, April 26. We expect adjusted EBITDA of $84mn, roughly flat year-on-year and in line with the Street. Our 2012E/2013E EPS goes from $2.71/$3.23 to $2.85/$3.62."
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 $31.94 yesterday.
Analyst, Brian Nowak, said, "EXPE has underperformed the S&P 500 by ~850bp since 4Q:11 earnings (on 2/9/12) and is roughly in line with the market year-to-date. We believe EXPE must deliver on its 2012 guidance (mid-single-digit adjusted EBITDA growth) and likely generate positive earnings revisions for the stock to outperform. Our cross-visit analysis shows that Expedia.com’s competition and threat of commoditization continues growing. It is hard to see how Expedia.com can generate a substantial increase in conversion, unless it can develop a stickier customer base. Expedia will report 1Q results on Thursday, April 26. We expect adjusted EBITDA of $84mn, roughly flat year-on-year and in line with the Street. Our 2012E/2013E EPS goes from $2.71/$3.23 to $2.85/$3.62."
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 $31.94 yesterday.
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