Expedia Group Bookings Re-Accelerating: Price Target Increased

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I am pleased to announce that I am increasing my price target for Expedia Group ($NASDAQ:EXPE), Inc. (NASDAQ: EXPE). This is due to the fact that recent reports show that the company’s bookings are re-accelerating and heading towards pre-COVID levels. Expedia Group is a leading online travel company that provides hotel, airline ticket, and vacation package deals through its online travel services. The company operates a portfolio of brands including Expedia, Hotels.com, Hotwire, Vrbo, CheapTickets, and Expedia Group Media Solutions. It also owns and operates several airline ticket consolidators, including CheapOair and Egencia in the US as well as eDreams ODIGEO, a leading online travel agency in Europe. The pandemic has been hard on Expedia Group, causing significant declines in bookings due to travel restrictions and fear among consumers.

However, as pandemic-related restrictions are being eased in many countries, bookings have started to pick up pace and there is optimism that demand will continue to grow in the coming months. Given the positive outlook for Expedia Group’s bookings, I am raising my price target for the stock. I believe that the company is well positioned to capitalize on the rebound in the travel industry and investors should take advantage of its attractive valuation.

Price History

Tuesday marked a significant day for the Expedia Group as their stock opened at $138.5 and closed at $138.4, a drop of 1.0% from its previous closing price of 139.8. This decrease in stock prices was offset by the fact that analysts increased their price target of the company based on the re-acceleration in bookings. The re-acceleration in bookings is said to be a result of the travel market’s recovery since the restrictions caused by the pandemic have started to ease. After the successful reopening of the air travel sector, Expedia Group has seen a surge in bookings, reaching almost pre-pandemic levels.

This increase in bookings has encouraged analysts to increase their price target for the stock, thus boosting investor confidence. The Expedia Group has been one of the few companies that have ridden out the pandemic unscathed, due to its diversified portfolio of services, ranging from flights and hotels to rental cars and cruises. With the travel industry slowly recovering, Expedia Group is in a strong position to capitalize on this trend and provide its users with a seamless booking platform for all their travel needs. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Expedia Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Expedia Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Expedia Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Expedia Group are shown below. More…

Analysis

At GoodWhale, we have conducted an in-depth analysis of EXPEDIA GROUP‘s fundamentals. Based on our Star Chart classification, we have concluded that EXPEDIA GROUP is a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors looking to invest in such a company may value its intermediate health score of 6/10, indicating that the company is likely to sustain future operations in times of crisis due to its healthy cash flows and debt levels. In terms of performance, EXPEDIA GROUP is strong in terms of asset, growth, and profitability, while weak in dividend. More…

Peers

Expedia Group Inc is one of the world’s largest online travel companies, with a portfolio that includes some of the best-known brands in the industry. Its main competitors are Booking Holdings Inc, Adventure Inc, and Despegar.com Corp. All three companies are leaders in the online travel space, and each has a different focus.

– Booking Holdings Inc ($NASDAQ:BKNG)

Booking Holdings Inc is a online travel company that owns and operates a portfolio of travel brands. The company’s mission is to make it easy for everyone to experience the world. The company’s brands include Booking.com, Priceline.com, Agoda.com, Kayak.com, Rentalcars.com, and OpenTable. The company operates in over 200 countries and employs over 17,000 people.

– Adventure Inc ($TSE:6030)

Adventure Inc is a publicly traded company that operates in the adventure travel industry. The company is headquartered in Vancouver, Canada and was founded in 1971. The company offers a variety of adventure travel products and services including adventure tours, adventure travel packages, and adventure travel insurance. The company has a market cap of 80.18B as of 2022 and a Return on Equity of 13.93%.

– Despegar.com Corp ($NYSE:DESP)

Despegar.com Corp is an online travel company that offers a range of travel products and services, including air tickets, hotel rooms, vacation packages, and car rentals. The company operates in Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, and Uruguay. As of 2022, Despegar.com had a market cap of 407.36M and a ROE of 95.41%.

Summary

An investment analysis of Expedia Group reveals strong fundamentals, including accelerating bookings, strong profits, and a robust balance sheet. The company has continued to show strong growth over the past year, driven by investments in digital marketing and global expansion. Expedia’s financials have remained robust across all of its business segments, including its hotel, air, car, and cruise businesses.

The company has also continued to invest in technology and customer experience initiatives, with a focus on mobile booking and loyalty programs. With these key drivers in place, an analyst recently raised their price target on Expedia stock.