Expedia: S&P Upgrades Rating To Buy After Nearly 25% Slide

Standard & Poor’s analyst Scott Kessler this morning raised his rating on Expedia (EXPE) to Buy from Hold on a valuation basis, noting that the online travel agency’s stock is down almost 25% in less than two months. He contends the stock is now “attractively valued.”

“Although we see risks associated with EXPE’s notable exposure to Europe and the euro, we think these issues are largely priced into the shares,” he writes. “We believe the euro’s decline against the dollar will aid demand for European trips by U.S. travelers. We also think business travel is recovering, and companies focused on costs could increasingly look to EXPE. We also are optimistic about EXPE’s investments in China over the past year.”

Kessler keeps a $26 target on the stock.

EXPE today is up 31 cents, or 1.6%, to $20.03.