Citi Reiterates Buy on Expedia (EXPE)

Citi is out with its report on Expedia EXPE, reiterating Buy. In a note to clients, Citi writes, "We continue to view EXPE as a Core Holding among Large Cap Internet stocks. Our fundamental thesis remains: 1) A 11% FCF yield, 12X P/E stock with 15% 3-yr EPS growth outlook presents as the Best Value Play among Internet stocks; 2) Despite Steep Competition, EXPE's U.S. bookings share has actually remained relatively stable vs. Priceline and Orbitz, with Expedia the clear market share leader; 3) EXPE enjoys a key differentiator with its leading TripAdvisor asset, which grew 30%+ in 2010 and should be able to sustain relatively high growth rates for the foreseeable future despite the disintermediation risk due to Google Places." Citi reiterates its $29 PT. Shares of EXPE closed Monday at $24.52.