Expedia (EXPE) PT Lowered to $255 at Cantor Fitzgerald Ahead of Q2 Print

Cantor Fitzgerald analyst Deepak Mathivanan lowered the price target on Expedia (NASDAQ: EXPE) to $255.00 (from $260.00) while maintaining a Neutral rating.

The analyst commented, "We expect EXPE to report upside in 2Q and reiterate FY guide on bookings. The company should see sustained benefits from margin expansion in the core B2C business, and we expect to see FY26E EBITDA margin (+100-125bps y/y) guide revised slightly higher...We are modeling 2Q GB growth of 8% ex-FX (2-pt deceleration on 3-pt easy comp) driven by a 3-pt deceleration in RNs to 3% y/y from ongoing ME headwinds. On profitability, our EBITDA estimate of $1.05B is slightly above street and represents 1-pt y/y margin expansion to 25.0% (near high end of guide). Turning to outlook, we are currently modeling 2-pts further deceleration in GBs to 6% ex-FX in 3Q (6-pt tougher comp) as RN growth remains muted and ADRs moderate; however, there could be some upside to our estimates given recent macro trends. We are modeling 3Q EBITDA margin of 32.6% (largely stable y/y) but expect EXPE to see nice expansion in B2C margin in 2H26E. Our EPS estimate for 3Q of $7.65 is slightly below street at $7.69"

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