HomeAway Upgraded to “Overweight” at Barclays (AWAY)
HomeAway (NASDAQ:AWAY) was upgraded by analysts at Barclays from an “equal weight” rating to an “overweight” rating in a research report issued to clients and investors on Monday, AnalystRatingsNetwork reports. The firm currently has a $48.00 price objective on the stock, up from their previous price objective of $34.00. Barclays’ price objective points to a potential upside of 19.40% from the stock’s previous close.
The analysts wrote, “We are upgrading shares of AWAY to Overweight from Equal Weight due to our improving outlook for Pay-Per-Booking (PPB) revenues, increasing adoption of booking and payment-enabled listings that should drive upside to ancillary revenues, and a growing opportunity in Asia Pacific. In addition, we believe AWAY’s recent partnership with Expedia to distribute listings on their sites is evidence of increasing interest by the OTAs in the vacation rentals category that will most likely be expressed through further partnerships or consolidation, rather than organic competition, in our view.” The analyst reported that traffic could aid in PPB revenue opportunity and is optimistic on PPB’s long-term opportunity. Merwin estimates that PPB listings will hit 270,000 and generate $30 million in incremental revenues. Due to this optimism, Barclays raised 2014 FCF estimate from $116 million to $123 million. Barclays noted that e-commerce adoption could reach 42% of total listings by the end of 2016, up 11% in 3Q13, driving ancillary revenue growth. The analyst added, “We believe e-commerce adoption will provide a tailwind to ancillary revenues, which we now expect will accelerate to 29% y/y growth in 2015, up from 27% y/y growth in 2014.”
In other HomeAway news, CEO Brian Sharples unloaded 36,642 shares of the company’s stock on the open market in a transaction that occurred on Thursday, January 2nd. The shares were sold at an average price of $40.16, for a total value of $1,471,542.72. Following the transaction, the chief executive officer now directly owns 65,681 shares of the company’s stock, valued at approximately $2,637,749. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.
A number of other firms have also recently commented on AWAY. Analysts at Pacific Crest raised their price target on shares of HomeAway from $37.00 to $50.00 in a research note to investors on Thursday. They now have an “outperform” rating on the stock. Separately, analysts at Zacks upgraded shares of HomeAway from a “neutral” rating to an “outperform” rating in a research note to investors on Tuesday, January 7th. They now have a $43.90 price target on the stock. Finally, analysts at Goldman Sachs Group Inc. initiated coverage on shares of HomeAway in a research note to investors on Wednesday, December 18th. They set a “neutral” rating and a $38.00 price target on the stock. Ten research analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus price target of $38.28.
HomeAway (NASDAQ:AWAY) traded down 2.76% during mid-day trading on Monday, hitting $40.20. 1,385,461 shares of the company’s stock traded hands. HomeAway has a one year low of $21.35 and a one year high of $42.57. The stock’s 50-day moving average is $39.18 and its 200-day moving average is $32.96. The company has a market cap of $3.450 billion and a P/E ratio of 147.64.
HomeAway (NASDAQ:AWAY) last announced its earnings results on Wednesday, November 6th. The company reported $0.19 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.16 by $0.03. The company had revenue of $90.15 million for the quarter, compared to the consensus estimate of $89.20 million. During the same quarter in the prior year, the company posted $0.14 earnings per share. The company’s quarterly revenue was up 23.3% on a year-over-year basis. Analysts expect that HomeAway will post $0.63 EPS for the current fiscal year.
HomeAway, Inc (NASDAQ:AWAY) is an online marketplace for the vacation rental industry.
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