Expedia's Turning Point? BofA Sees Upside With VRBO Gains And Post-Election Boost

Core Viewpoint - BofA Securities analyst Justin Post upgraded Expedia Group, Inc. from Neutral to Buy, raising the price target from $187 to $221, citing early signs of improvement in U.S. leisure travel spending into 2025 [1]. Group 1: Financial Performance and Projections - U.S. bookings, reported OTA nights, and RevPAR data were trending at low single digits in 2024, but there are indications of modest improvement [1]. - Expedia experienced a decline in B2C nights growth and revenues, with a reported decrease of 1% in the third quarter of 2024 compared to peers, but trends are expected to improve in 2025 due to easier comparisons and better positioning at VRBO and Hotels.com [2]. - The analyst is confident that Expedia can achieve 10% EBITDA growth in 2025, supported by improving U.S. consumer sentiment post-election and a significant contribution from advertising, which rose by 32% in the third quarter of 2024 and could contribute 3 points to EBITDA growth next year [3]. Group 2: Market Sentiment and Investment Opportunities - Long-only sentiment remains cautious on Expedia; however, a new management team with stronger execution could reignite investor interest and support multiple expansions [3]. - Investors can gain exposure to Expedia through Invesco Leisure and Entertainment ETF (PEJ) and Amplify Travel Tech ETF (AWAY) [4]. - As of the last check, EXPE shares increased by 2.73%, reaching $185.58 [5].