Truist Initiates Coverage of Expedia Group with Hold Rating

Truist Securities has initiated coverage on Expedia Group with a Hold recommendation. The firm projects a 7.42% upside in stock price and an 8.72% increase in annual revenue, while EPS is forecasted at 11.83, reflecting mixed but overall slightly positive sentiment.

Date: 08-09-2024

AI Rating: 7

Truist Securities' initiation of coverage on Expedia Group with a Hold recommendation suggests a cautious approach towards the stock. The analyst price forecast indicates a potential 7.42% upside from the current closing price of €126.00/share, which could attract investors looking for growth opportunities.

The projected annual revenue growth for Expedia Group is 14,419MM, reflecting an increase of 8.72%. This growth in revenue can positively impact investors’ perceptions, suggesting that the company is poised for expansion, despite the Hold recommendation implying the stock is not a buy yet.

The non-GAAP Earnings Per Share (EPS) is forecasted at 11.83, indicating profitability. A higher EPS is a positive indicator, often viewed favorably by investors as it reflects the company's ability to generate earnings relative to its share count.

In terms of institutional engagement, there are currently 1,588 funds34 owners or 2.10% in the last quarter, which could signal waning interest among institutional investors. However, the average portfolio weight dedicated to Expedia has increased by 9.78%, which could suggest that remaining funds are increasing their conviction in the stock.

Particularly notable is the portfolio allocation decrease by well-known funds like J.P. Morgan Chase and Vanguard, suggesting a possible reevaluation of the potential for growth in the near term.

Overall, while there are positive indicators such as EPS and revenue growth, the mixed sentiment due to reduced institutional holdings might create uncertainty around stock performance. Investors should consider these factors carefully before making investment decisions regarding Expedia Group.

Stocks: EXPE