Benchmark Capital Expects Expedia To Benefit From Recovery In Travel Demand (EXPE)

Benchmark Capital has a $31 price target and Buy rating on online travel site Expedia, Inc. EXPE and says the company is poised to benefit from the ongoing recovery in travel. In the research note, Benchmark Capital writes, "Expedia (EXPE-BUY, PT $31) should benefit from the ongoing recovery in travel demand, as evidenced by further sequential growth in domestic travel ecommerce spending, up 9% y/y in July according to comScore. We are raising our 2010 domestic etravel forecast from 6% to 7% y/y growth to $85 billion. Online domestic spending on travel grew 9% y/y in July, a sequential improvement from the 8% y/y growth witnessed in June and 7% y/y growth in May. Air travel spending rose 12% y/y in July and 10% y/y in June and spending on hotels increased 5% y/y in both June and July. Rising air ticket prices, low-single digit growth in hotel occupancy and increasing transaction volumes all likely contributed to the growth." Shares of Expedia closed at $24.32 yesterday.