Goldman Sachs Maintains Neutral on Expedia (EXPE)

Goldman Sachs released its report yesterday on Expedia EXPE, maintaining Neutral. In a note to clients, Goldman Sachs writes, "American Airlines and Expedia jointly announced today that they had reached a 'memorandum of understanding' that allows for American Airlines tickets to be made available on Expedia and Hotwire sites immediately through global distribution system technology 'initially.' In the future, American's fares, schedules and customized travel products and services will be available on Expedia through a direct connect with American via GDS technology. Overall, we see today's announcement as a positive for Expedia shares though the tentative nature (i.e. this is an MOU rather than a binding agreement) and nebulous wording keep us somewhat cautious. We remain Neutral rated." At the time of posting, shares of EXPE were trading pre-market at $23.55, up 4.99% from Monday's close.