Deutsche Bank Downgrades Expedia to Hold (EXPE)

Deutsche Bank is out with its report today on Expedia EXPE, downgrading EXPE from Buy to Hold. In a note to clients, Deutsche Bank states, "We are lowering our rating to HOLD from BUY and adjusting our price target to $25 from $33 previously. While Expedia is still positioned to benefit from secular online travel trends and remain a strong distribution channel for suppliers, we are moving to the sidelines given higher investment spend in both its core and media businesses and pressure on TripAdvisor by Google Places. As such, we expect the deleveraging in the model and for the stock to be range bound until it can demonstrate that it could regain leverage." Shares of EXPE are trading pre-market at $22.09, down 14.01% from yesterday's close.