7 Cheap Travel Stocks to Buy According to Analysts

2) Despegar.com, Corp. (NYSE:DESP)

Average Upside Potential: 33.75%

Forward P/E as of September 27: 12.44x

Number of Hedge Fund Holdings: 24

Despegar.com, Corp. (NYSE:DESP) is an online travel company, offering a range of travel and travel-related products to leisure and corporate travelers.

Despegar.com, Corp. (NYSE:DESP)’s strategic focus on high-margin package sales and non-air revenues should continue to drive growth in the upcoming quarters. While the expansion of loyalty programs and mobile app usage should as growth drivers, Despegar.com, Corp. (NYSE:DESP) is expected to be aided by strong demand in Brazil and Mexico. The cost efficiencies in various business areas might help in the EBITDA growth.

As a result of cost reductions and AI utilization, Despegar.com, Corp. (NYSE:DESP) expects that gross margin expansion will continue. The H2 2024 should generate stronger cash flow, with Q4 2024 being a significant quarter. The company plans to capitalize on technological advancements and strategic partnerships. The recent divestiture of its destination management company, BDExperience, to World2Meet, demonstrates a strategic shift. It enables Despegar.com, Corp. (NYSE:DESP) to focus on its core online travel operations and expand its reach in the Latin American market.

The company maintains its focus on investing in B2B and white-label offerings, entering partnerships with global ride-hailing apps, retailers such as Elektra, and financial institutions like Scotiabank. Market experts believe that these alliances should drive additional growth and market penetration. Despegar.com, Corp. (NYSE:DESP)’s focus on non-air revenue, like travel packages and hotel bookings, is resulting in higher take rates and margins.

Cantor Fitzgerald reaffirmed an “Overweight” rating, setting a $17.00 price objective on 16th August.