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Ahead of Expedia ‘s ( EXPE ) Q4 earnings out after the close Wednesday, Barclays on Tuesday lowered its price target for the online travel agency. Barclays analyst Paul Vogel dropped his price target to 120 from 150, citing a wide range of analyst estimates for the company as it integrates acquisitions such as Orbitz and HomeAway. “There are a number of moving parts within Expedia that we believe have created an uncertain backdrop around forecasts and expectations,” Vogel wrote in a research note Tuesday. Expedia revenue is expected to rise 26% to $1.71 billion in Q4 from $1.36 billion in Q4 2014, according to the consensus of analysts polled by Thomson Reuters. They see EPS minus items rising 16% to $1. Shares of the Seattle-based company were up a fraction in afternoon trading in the stock market today , near 91.Vogel rates Expedia stock overweight. HomeAway specializes in vacation rentals — known as alternative accommodations in industry jargon — that in part Expedia purchased as a hedge against the rapidly growing Airbnb, a firm that lets people rent out their home, a room in their home, or apartment to travelers. Analysts say rival online travel agency Priceline ( PCLN ), is well-hedged against alternative accommodations. In a research note last year, RBC analyst Mark Mahaney said Priceline’s inventory of 361,000 properties has risen by 80% in a year. Vogel says three issues could impact HomeAway’s revenue: 1. Complications surrounding integrating its financials with Expedia. 2. The change to online booking, which will have an impact on fee revenue and renewal rates. 3. Charging travelers a fee is critical to achieving the company’s projected earnings. In terms of integrating Orbitz into Expedia, Vogel is building only a “small amount of synergies” into his financial models based on executives’ commentary on the Q3 earnings call . Vogel, who also cut his Q4 earnings estimate, says the price-target cut was necessary given the “current market environment.” Scalper1 News
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