Goldman Sachs has adjusted its valuation on Expedia Group Inc., raising the firm's price target to $325 from $295 while maintaining a Buy recommendation on the online travel agency. The updated target remains below the Street high of $370, according to data cited in company analytics.
The bank attributed the change to a clearer improvement in travel demand in the third quarter, driven by lengthening booking windows and longer average lengths of stay. That mix helped push bookings higher across multiple regions and supported what Goldman described as accelerating momentum in the United States alongside persistent strength elsewhere.
Regional performance highlights
- U.S. room nights rose by high single digits year-over-year, marking the strongest pace of growth in more than three years.
- EMEA - Europe, the Middle East and Africa - recorded low double-digit room-night growth versus the year-ago period.
- The rest of the world delivered high-teens percentage growth, with Asia exceeding 20% year-over-year.
Those regional gains have been reflected in Expedia's market performance, with the stock returning 60.64% over the past year.
Business-line performance
Expedia's B2B segment posted 26% year-over-year growth in bookings, while the consumer business grew 7% overall. The consumer expansion was stronger outside the United States, where it registered double-digit gains. Within the brand portfolio, Brand Expedia was the fastest-growing consumer brand in the quarter, and both Hotels.com and Vrbo showed improvements on a sequential and year-over-year basis.
Guidance, margins and valuation signals
The company has increased its full-year outlook. Management now expects gross bookings to grow 7% year-over-year, up from a prior guidance range of 3-5%. Revenue guidance was also raised to a 6-7% year-over-year increase, from an earlier 3-5% range. Independent data cited by InvestingPro highlights Expedia's gross profit margin at 89.94% and a PEG ratio of 0.66, metrics that the service flagged as supportive of an attractive valuation relative to growth.
InvestingPro data further indicates that Expedia is trading slightly below its fair value and carries a Piotroski Score of 9, a measurement signaling strong financial health.
Analyst reactions and sector commentary
The company’s third-quarter results—described by analysts as stronger than expected across core brands—prompted several brokerages to update their views. DA Davidson raised its price target to $294 and maintained a Buy rating. BTIG increased its target from $275 to $330, citing healthy near-term trends and the possibility of upside to fourth-quarter room-night and EBITDA estimates. By contrast, Bernstein reiterated a Market Perform rating with a $256 target, while noting that Expedia had beaten consensus gross bookings and managed marketing expenses effectively.
Strategic moves
Expedia announced an agreement to acquire Tiqets, an Amsterdam-based platform specializing in activities and experiences. The deal is presented as part of the company’s broader effort to expand its product portfolio beyond accommodations.
Sector headwinds and uncertainties
Despite the positive operational signals and updated guidance, market participants have flagged risks tied to technological disruption. Specifically, concerns about AI-powered travel search tools have weighed on online travel agency shares. Bernstein noted that Expedia, alongside peers Booking and Airbnb, has experienced share price declines amid uncertainties around how AI-driven search could disrupt the OTA model. At the same time, Bernstein outlined a potential bull case for online travel agencies, suggesting that upside scenarios remain possible despite recent stock weakness.
Overall, the combination of accelerating room-night demand, improved booking patterns and upgraded guidance has supported analyst optimism at some firms, while others remain cautious given competitive and technological uncertainties facing the broader online travel sector.