Deutsche Bank Reiterates Buy On Expedia (EXPE)

Deutsche Bank is reiterating its Buy rating and $35 price target on Expedia, Inc. EXPE. In a research report sent to clients, Deutsche Bank writes, "For Expedia, our $35 price target is based on 9x our 2011 EBITDA estimate of $1.1bn, a discount to the online travel group trading at 15x 2011 EBITDA given the higher growth profiles of OTA businesses in international regions. Risks include macroeconomic concerns, slower growth, leisure travel, supplier concentration, FX fluctuations, competition, decline in ADRs, rising online ad costs, and changes in search engine algorithms." Shares of EXPE gained 39 cents yesterday to close at $26.45, a gain of 1.5%.