Goldman Sachs Comments on Expedia's (EXPE) Q1

Goldman Sachs maintained a Neutral rating on Expedia (NASDAQ: EXPE) with a price target of $75.00. Analyst Heath P. Terry commented following Q1 results.

"Expedia reported 1Q revenue of $1,200mn (+19% yoy vs. +18% in 4Q), ahead of consensus at $1,182mn, while adjusted EBITDA of $106mn surpassed consensus expectations at $102.5mn. Outperformance was driven by strength across all of Expedia’s brands except Hotwire, while upside from Travelocity bookings was largely cancelled out by the unfavorable Easter comp. Acceleration in domestic & International bookings was largely driven by Travelocity. Guidance for FY14 adjusted EBITDA growth of 13-16% remained unchanged with most dollar growth expected in 2H14," said Terry.

"While valuation remains attractive, the potential impact of Booking.com’s efforts in the US, the transition to ETP in Europe, and margin compression from marketing leaves us Neutral rated," he added.

For an analyst ratings summary and ratings history on Expedia click here. For more ratings news on Expedia click here.

Shares of Expedia closed at $73.87 yesterday.

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