Jefferies analyst John Colantuoni upgraded Expedia (NASDAQ: EXPE) from Hold to Buy with a price target of $300.00 (from $240.00).

The analyst comments: "Our analysis supports EXPE’s continued delivery of HSD%+ Lodging Bookings growth and 100+ bps of annual EBITDA margin expansion, which is furthered by robust share repurchases for a 3+ yr runway of 20%+ EPS growth. Our constructive outlook is also supported by a recent acceleration in B2C lodging, elevated traffic growth, and positive demand signals across US travel. We model modest Bookings/EBITDA upside but see potential for meaningful margin upside, supported by incremental cost savings and a history of upside to initial FY guidance. However, despite EXPE’s attractive EPS algo and upside potential, forward GAAP P/E resides ~40% below Internet and at a depressed level vs the broader market. We upgrade to Buy based on our view that EXPE is poised to benefit from a 3+ yr runway of 20%+ EPS growth and potential multiple appreciation. Our $300 PT (prior $240) implies ~14x '27 GAAP P/E, which is 25% below Internet despite EXPE's faster EPS growth (26% 3-yr CAGR vs. 17% avg) to account for ongoing headline risk created by the ME conflict."

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Shares of Expedia closed at $225.81 yesterday.