Analysts Are Downgrading These 5 Stocks

2. Expedia Group, Inc. (NASDAQ:EXPE)

Number of Hedge Fund Holders: 76

Wolfe Research turned bearish on Expedia Group, Inc. (NASDAQ:EXPE) on Wednesday, December 7. The research firm downgraded the online travel company from “Peer Perform” to “Underperform”.

The research firm pointed towards weakness in travel demand. Analyst Deepak Mathivanan believes travel demand would likely moderate amid the weakening macroeconomic environment in the coming quarters. Mathivanan added that the consensus expectations do not truly reflect the actual situation. He has a price target of $85 per share for Expedia Group, Inc. (NASDAQ:EXPE).

On the other hand, investment management firm Miller Value Partners expressed optimism about the growth prospects of Expedia Group, Inc. (NASDAQ:EXPE) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Expedia Group, Inc. (NASDAQ:EXPE) ($92.69) has a high teens free cash flow yield, trades at 14x 2022 and 10x 2023 earnings. We believe it can sustain earnings per share growth in the mid-teens. It massively improved its business and margins during the pandemic, has repaired its balance sheet and is chaired by an amazing capital allocator, Barry Diller. We think it’s worth more than double the current price.”