Shares of Expedia Group Inc (NASDAQ: EXPE) gained more than 5% Friday after the online travel agency executed a series of corporate moves, including raising new capital.
The stock saw an upgrade by JMP Securities from Market Perform to Market Outperform with a $92 price target on the expectation that travel demand is likely to bottom in April.
The company solidified its balance sheet with a $4-billion debt and preferred equity raise, believing travel demand is likely at the trough in April, analyst Andrew Boone said in the upgrade note.
With cancellations exceeding new bookings near term, this is the trough of travel demand, but the timing of travel recovery remains unclear, the analyst said.
Expedia Has $8B Of Liquidity
Expedia has $8 billion-plus of liquidity that can see it through to a normalized travel environment, Boone said.
“Capital raise gives Expedia $8 billion + in cash & a year for travel to normalize. With its announced $3.95 billion capital raise and $4.1 billion of cash at the end of 1Q20, Expedia now has $8 billion + of liquidity that can see it through to a normalized travel environment.”
EXPE Price Action
Expedia shares were up 5.05% at $66.57 at the close Friday. The stock has a 52-week high of $144 and a 52-week low of $40.76.
Why Expedia's Stock Is Trading Higher Today
Expedia CEO, CFO Resign; Chairman Barry Diller, Vice Chair Kern To Takeover
Latest Ratings for EXPE
|Apr 2020||Credit Suisse||Maintains||Outperform|
|Apr 2020||JMP Securities||Upgrades||Market Perform||Market Outperform|
View More Analyst Ratings for EXPE
View the Latest Analyst Ratings
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.