Zacks Investment Research downgraded shares of Expedia Inc. (EXPE) from OUTPERFORM to NEUTRAL on June 24, 2014, with a target price of $82.00.
Expedia, Inc., one of the leading online travel companies in the world, reported in-line first quarter results. Order growth remained strong in the quarter, helped by a stronger travel market all over the world, contribution from the VIA and Trivago acquisitions, as well as the strategic expansion in Asia. The agency business looks good, which is no doubt benefiting from the ETP initiative. While we continue to believe in management's growth strategy across markets, we think that the increasing competition in the domestic market and lack of ADR growth in emerging markets make margin expansion difficult. We therefore downgrade the shares to Neutral.
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