Expedia: Citigroup Raises PT to $206 from $177, Maintains Neutral Rating

Wednesday, Aug 13, 2025 7:02 am ET1min read

Expedia: Citigroup Raises PT to $206 from $177, Maintains Neutral Rating

Citigroup has recently upgraded its price target for Expedia Group (EXPE) stock to $206 from $177, while maintaining a neutral rating. The upgrade reflects Citigroup's positive outlook on the company's financial performance and growth prospects, particularly in light of the ongoing recovery in the travel industry [1].

Expedia Group has been a significant player in the digital transformation of travel, offering a comprehensive portfolio of consumer brands, B2B solutions, and advertising services. The company's diversified business model includes brands such as Expedia, Hotels.com, and Vrbo, and its B2B business has shown consistent growth, achieving 16 consecutive quarters of double-digit expansion [1].

Key drivers for the price target upgrade include the company's strong Q2 results, which showed 6% revenue growth despite soft U.S. travel demand. Additionally, Citigroup highlights Expedia's strategic focus on delivering value for travelers, investing in high-growth opportunities, and driving operating efficiencies, which have positioned the company for sustained growth [1].

The upgrade also takes into account Expedia's successful implementation of artificial intelligence across various functions, leading to higher conversion rates and operational efficiencies. Furthermore, the company's diversified geographic exposure and growing international presence provide additional growth catalysts [1].

Citigroup's analysts believe that Expedia's balanced approach to growth, strong international exposure, and technology investments position it to capture upside as travel demand normalizes. The company's ability to maintain disciplined execution and achieve consistent shareholder returns through share repurchases further supports the positive outlook [1].

In conclusion, the upgrade in Citigroup's price target for Expedia stock reflects the investment bank's confidence in the company's ability to capitalize on the travel recovery trends and leverage AI to expand margins while growing market share across consumer and B2B segments.

References:

[1] https://www.tikr.com/blog/expedia-stock-has-underperformed-in-the-past-decade-heres-why-expe-could-gain-37-from-current-levels

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