Mizuho Raises Expedia (EXPE) Price Target to $270, Maintains Neutral Rating

Core Insights - Expedia Group, Inc. (NASDAQ:EXPE) has been recognized as one of the 15 Best Stocks to Buy for the Medium Term [1] - Mizuho analyst raised the price target for Expedia to $270 from $240 while maintaining a Neutral rating, citing strong earnings and positive sales growth guidance for Q4 [2] - In fiscal Q4 2025, Expedia reported revenue of over $4.4 billion, a 9% year-over-year increase, surpassing Wall Street expectations [3] - Earnings per share reached $7.57, which is 23% higher than the previous year and 9% above estimates, with booked room nights growing 11% year-over-year [3] - The company experienced margin expansion of over 2 points due to operational discipline and volume leverage, and sees AI as a significant opportunity for future efficiency improvements [4] Financial Performance - Revenue for Q4 2025 was reported at just over $4.4 billion, exceeding the consensus estimate of $4.3 billion [3] - Earnings per share were reported at $7.57, which is 23% higher than the previous year [3] - Booked room nights increased by 11% year-over-year, marking the fastest growth in over three years [3] Strategic Outlook - Expedia guided for mid- to high-single-digit sales growth in Q4 and further margin expansion anticipated in 2026 [2] - The company highlighted the potential of AI to enhance operational efficiency and effectiveness over time [4]