Report
Dan Wasiolek
EUR 100.00 For Business Accounts Only

Expedia Thesis of Reaccelerating 2019 EBITDA Growth and Network Advantage Intact; Shares Undervalued

Expedia’s first-quarter HomeAway and international booking trends, along with improved profitability, support our stance that the company’s incremental investment in these areas will translate into reaccelerating EBITDA growth to a midteen level in 2019 from high-single digits in 2018. We expect to lift our $175 fair value estimate around a midsingle digit percentage to account for currency and tax benefits, leaving shares of this network-advantaged company (source of its narrow moat) undervalue...
Underlying
Expedia Group Inc.

Expedia Group is an online travel company. The company's portfolio of brands includes: Expedia.com?, an online travel brand; Hotels.com?, a global lodging company operating websites with its Hotels.com? Rewards loyalty program; Vrbo?, a global online marketplace with a focus on providing lodging options for families; Egencia?, a corporate travel management company; Hotwire?, an online travel website providing spontaneous travel through its Hot Rate? deals; trivago?, an online hotel metasearch platform; and SilverRail Technologies, Inc., provider of a global rail retail and distribution platform connecting rail carriers and suppliers to both online and offline travel distributors.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Dan Wasiolek

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