RBC Capital analyst Mark Mahaney reiterated an Outperform rating and raised his price target on Expedia (NASDAQ: EXPE) to $140.00 (from $130.00) following an "intrinsically strong Q2 – surprisingly strong, given intra-quarter management public commentary -- with better than expected Bookings, Revenue, EBITDA, EPS, and Room Night growth."

The keys to the quarter, according to Mahaney: 1) Strong Unit Growth – Room Night growth accel’ed to a multi-year high of 35% Y/Y (24% Domestic & 50% International), while Air Tickets Sold growth accel’ed to 26% Y/Y -- this is likely the best evidence that EXPE is executing very well; 2) Expanding Hotel Inventory – EXPE added 27k hotels in Q2, adding more hotel inventory in H1:15 than in all of 2014; 3) Trivago Chugging Along – a very solid 23% net revenue growth in H1:15; 4) EXPE Still Hoping To Close OWW In Q4 – which should bring a lot of synergies… & 5) Boosting The Dividend – a 33% increase to $0.24 per share…a very rare sighting in Internet-land.

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 $107.61 yesterday.