Wednesday, January 16, 2013

Expedia Pulled From Goldman Conviction Buy List; Shares Slip

Expedia (EXPE) shares are trading lower this morning after Goldman Sachs analyst Ingrid Chung removed the stock from the firms Conviction Buy List, “due to recent under-performance, a greater negative reaction than we anticipated to the Google/ITA announcement and conflicting concerns around demand slowing and access to hotel supply.”

But she keeps a Buy rating on the stock, asserting that U.S. hotel trends continue to improve, and adding that the Google/ITA deal poses a threat mainly to Bing. She thinks the stock remains attractive at around 11x expected 2010 EPS.

EXPE this morning is down 48 cents, or 2.5%, to $18.50.

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