Citigroup Cuts Expedia Target 20% to $225 Following 11.4% Q4 Revenue Jump
Citigroup lowered its price target on Expedia to $225 from $281, citing a more cautious post-earnings outlook despite an 11.4% revenue increase to $3.54 billion in Q4. Expedia forecasts full-year gross bookings of $127 billion–$129 billion and first-quarter adjusted core profit margins up 3–4 percentage points.
1. Citigroup Lowers Price Target
On February 23, Citigroup reduced its price target on Expedia from $281 to $225 and maintained a Neutral rating, reflecting a tempered outlook after the company’s latest results and guidance.
2. Q4 Financial Performance
Expedia reported fourth-quarter revenue of $3.54 billion, up 11.4%, and projected full-year gross bookings between $127 billion and $129 billion, exceeding the $125.95 billion consensus.
3. Margin Guidance and Outlook
Management expects first-quarter adjusted core profit margins to expand by 3–4 percentage points, supported by one-time gains and cost cuts, while full-year margin growth is forecast at just 1–1.25 percentage points amid ongoing macro uncertainty.