On Tuesday, BTIG reaffirmed its positive stance on Expedia Group Inc. (NASDAQ:EXPE) stock, maintaining a Buy rating and a price target of $150.00. The firm's outlook followed recent investor meetings hosted with Expedia's new CEO, Ariane Gorin, and CFO, Julie Whalen.
The meetings, which occurred last week, marked Gorin's first investor roadshow since she assumed the CEO position in May. BTIG expressed confidence in Gorin's capability to lead the company as it transitions from a period of extensive restructuring into a phase focused on execution.
The firm noted that Expedia is undergoing a strategic shift, which includes a reassessment of its international One Key rollout and a marketing pivot from customer retention to new customer acquisition.
Additionally, BTIG highlighted the need for improvements in Expedia's VRBO and Hotels.com services. The firm also pointed out the planned alterations to the centralized team structure, which aims to introduce a degree of brand ownership—a move seen as necessary for the company's forward momentum.
The analysis by BTIG comes after a series of meetings with both Expedia and its competitor Booking Holdings Inc. (NASDAQ:BKNG), which currently holds a Neutral rating from the firm.
BTIG observed a moderation in travel demand between the US and Europe, suggesting this trend was more of a leveling off rather than a significant downturn.
In conclusion, BTIG's commentary underscores cautious optimism for Expedia's future under the new leadership. Strategic adjustments are set to address current challenges and capitalize on market opportunities. The maintained Buy rating and $150 price target reflect the firm's confidence in Expedia's potential for growth and operational improvement.
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