Deutsche Bank Downgrades Expedia (EXPE) to Hold

October 14, 2013 6:51 AM EDT
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Price: $179.46 +1.07%

Rating Summary:
    24 Buy, 31 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 32 | New: 33
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Deutsche Bank downgraded Expedia (NASDAQ: EXPE) from Buy to Hold with a price target of $51.00.

Analyst Ross Sandler elaborates, "We've stated that there are three scenarios likely to play out with EXPE shares: 1) The "Quick Fix" whereby Expedia fixes the short term problems from 2Q (TripAdvisor, Qunar, etc) and is able to hit its full-year guidance, 2) The "Almost Gets There" where EXPE fixes the 2Q problems, but has additional cost for on- boarding the Travelocity deal and other items, and has to take guidance down slightly, or 3) The "Breakdown" where EXPE sees further execution and competitive issues, and management reduces guidance again. Our view had been that EXPE was somewhere between scenario #1 and #2, however, after learning of the recent management changes at and finalizing our quarterly checks, we believe EXPE is closer to #2 or #3, and hence are stepping aside, trimming estimates and downgrading to Hold from Buy."

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 $51.73 yesterday.

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