Expedia, Orbitz jump on bullish analyst coverage

|About: Expedia, Inc. (EXPE)|By:, SA News Editor

Susquehanna has upgraded Expedia (EXPE +3.3%) to Positive, and UBS has started Orbitz (OWW +4.7%) at Buy.

Susquehanna: "Our updated breakdown of EXPE's 3 main businesses (Travelocity, Trivago, and "core") shows how Street EPS numbers are 3% and 4% too low in '14 and '15 even using conservative assumptions." The firm thinks Expedia should trade at a 25% premium to the S&P 500 (up from a current 12%), given much faster EPS growth.

UBS is optimistic about the potential of a new loyalty program to boost Orbitz's bookings. The company has been growing much slower than bigger rivals Priceline and Expedia for some time.