DA Davidson analysts reduced their price target for Expedia (NASDAQ:EXPE) to $135 from $152 while maintaining their Neutral rating on the stock. This adjustment comes after Expedia's mixed Q1/24 results and an unexpected reduction in its full-year outlook due to a slower-than-anticipated revenue recovery at Vrbo following its recent tech platform migration. Hotels.com also appears to be underperforming for similar reasons.

The analysts reduced their 2024 revenue estimate for Expedia by 2% and their EBITDA estimate by 5%, lowering it from $3,064 million to $2,911 million. The new price target of $135 implies a 7x multiple of the projected 2024 EV/EBITDA.