Piper Sandler has adjusted its price target for Expedia (NASDAQ:EXPE) shares, bringing it down to $140 from the previous $145, while maintaining a Neutral rating on the stock.
The revision follows the company's second-quarter results and the first earnings call led by the new CEO, Ms. Gorin.
Expedia's second-quarter performance surpassed expectations, but the company revised its full-year 2024 guidance downward.
This adjustment marks the second time the company has lowered its forecast for FY24. Piper Sandler previously downgraded Expedia from Overweight to Neutral after the initial forecast cut.
The stock experienced a surge of approximately 10% in after-hours trading, which Piper Sandler suggests may indicate that investors consider the company's outlook to be conservative. Strength in the company's business-to-business segment was noted, and while the vacation rental platform VRBO saw declines, the rate of decrease has slowed.
Expedia reported second-quarter bookings totaling $28.8 billion, surpassing the anticipated $28.6 billion. The company's revenue also exceeded expectations, coming in at $3.6 billion against the forecasted $3.5 billion.
However, Expedia's guidance for third-quarter bookings growth fell short of the expected 7%, and the company revised its 2024 revenue growth projection down to 4%. Analysts from BofA Securities and Citi have adjusted their price targets for the company, maintaining a neutral stance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.