Expedia Gears Up For Takeoff As Travel Bookings Bounce Back

Expedia Group Inc. EXPE is drawing fresh optimism from Wall Street amid signs of a rebound in U.S. travel demand.

Bank of America Securities (BofA) analyst Justin Post reiterated the Buy rating on Expedia Group, with a price forecast of $211.

Post maintains a positive stance on Expedia, noting that a mild recovery in U.S. bookings during the summer and shoulder season could catalyze the stock, which is heavily tied to the domestic travel market.

The analyst sees fewer downside risks to estimates, thanks to stabilizing trends since April, and points to multiple key tailwinds that could aid Expedia.

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These include continued growth in its B2B and advertising segments, aided by new airline partnerships with Southwest Airlines Company LUV and Ryanair Holdings plc RYAAY.

Post expects EBITDA to grow 7% in 2025, based on conservative 2% growth from the B2C segment, which is reasonable given the company's flat U.S. and 33% international exposure.

He also highlights Expedia's strong free cash flow profile and buyback potential, estimating the company could repurchase some 10% of its shares over the next year, excluding dividends.

This, combined with easier year-over-year comparisons in 2026, could help improve investor sentiment.

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The stock, which has lagged peers year-to-date, is currently trading at 5.8x estimated 2026 EBITDA and 9x expected 2026 FCF—valuations that Post believes remain attractive.

U.S. air travel data continues to show year-over-year declines, with June airline spending down 10.9% and lodging spending down 3.5%, according to Bank of America card data.

While these figures mark a further deceleration from May, Post believes the stability in recent trends reduces the risk of further estimate cuts.

Price Action: EXPE shares are trading higher by 0.88% to $184.60 at last check Friday.

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