Expedia Price Targets Revised to $240–$260; Pension Fund Buys $28.5M Stake
DA Davidson cut its Expedia price target to $260 from $294 and Susquehanna lowered its to $240 from $265, while BMO Capital raised its target to $255. Swedish pension fund Andra AP fonden bought 133,100 Expedia shares valued at $28.45 million in the third quarter.
1. Analyst Price Target Adjustments
On February 17, DA Davidson cut its Expedia price target to $260 from $294, citing that an initial guide for 100–125 basis points of EBITDA margin expansion may underwhelm investors. Susquehanna followed by lowering its target to $240 from $265, while BMO Capital slightly raised its target to $255 from $250, with all firms maintaining neutral or market perform ratings.
2. Q4 Performance and Outlook
Expedia delivered solid fourth-quarter results driven by broad-based strength across its B2C, B2B and Trivago segments, and the initial 2026 guide calls for further EBITDA margin expansion. Analysts noted the company’s ongoing gains in online hotel and alternative accommodation penetration but view current risk/reward as balanced at prevailing valuation levels.
3. Institutional Stake Acquisition
Swedish pension fund Andra AP fonden acquired 133,100 Expedia shares valued at $28.45 million in the third quarter, reflecting institutional confidence in the travel group’s recovery. This move underscores growing interest from large investors in travel stocks benefiting from sustained demand and margin improvement.