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Research Alert: CFRA Lifts Opinion On Shares Of Expedia Group To Hold From Sell

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $12 to $252, representing 13x our 2026 EPS estimate (unchanged multiple), a discount to EXPE's 21x five-year average forward multiple justified by consumer spending and competitive risks. We raise our 2026 EPS estimate to $19.41 from $18.51 and 2027's to $22.18 from $20.38. Our higher revised estimates reflect resilient Q1 gross bookings growth (+13% Y/Y) despite volatile trends in response to the conflict in Iran. Management reiterated its 2026 gross bookings outlook of 6%-8%, which appears conservative given potential benefits to travel brought by the World Cup in North America. The company also saw significant leverage over sales and marketing (-400 bps Y/Y). If EXPE were to achieve its gross bookings guidance and sustain operating leverage, we see a reasonable path to achieve low-double-digit EPS growth in 2026. We view shares trading below their five-year average offering a more balanced risk/reward. Thus, we lift our opinion to Hold from Sell.

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