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Expedia's Future: Wells Fargo Slashes Price Target
1 Jul
Summary
- Wells Fargo reduced Expedia's price target to $303, maintaining an Equal Weight rating.
- Expedia Group announced its agreement to acquire Ireland-based CarTrawler.
- Analysts show a mixed but cautiously optimistic outlook for Expedia's performance.
Wells Fargo has adjusted its outlook on Expedia Group, reducing the stock's price target to $303 from $307, while maintaining an Equal Weight rating. Analysts note that Expedia currently trades below its estimated Fair Value, suggesting potential undervaluation.
The firm anticipates Expedia will guide for third-quarter 2026 bookings growth between 4% and 6%, with modest EBITDA margin expansion. However, Wells Fargo has trimmed its room nights estimates for the third and fourth quarters, citing Middle East conflict uncertainties offset by average daily rate strength.
Expedia Group recently announced an agreement to acquire CarTrawler, an Irish company specializing in car rental and transport solutions. This strategic move aims to expand Expedia's business-to-business capabilities by integrating numerous car and mobility suppliers with global travel brands.
In parallel, Expedia has launched AI-powered products for business partners, including an Intelligent Experience Platform. The company is also piloting sponsored listings on Vrbo, with a full rollout expected by the end of 2026, representing a potential monetization upside for 2027.
Analysts from Susquehanna and Cantor Fitzgerald have raised their price targets, citing solid performance and strong first-quarter results. Conversely, Goldman Sachs lowered its target, acknowledging better-than-expected earnings but noting broader industry challenges. This reflects a range of perspectives on Expedia's future trajectory.
