Wolfe Research analyst Deepak Mathivanan downgraded Expedia to Underperform from Peer Perform with an $85 price target. The analyst also downgraded the online travel sector to Market Underweight from Market Weight. Travel demand is likely to moderate amid the macroeconomic slowdown in 2023 and consensus estimates do not appear to reflect the magnitude accurately, Mathivanan tells investors in a research note. In addition, many online travel companies have ventured into less efficient customer acquisition channels over the last 12-18 months and have seen unit economics erode relative to. 2019, says the analyst. He believes the group will likely to be pressured with negative estimate revisions over the next 12-18 months. Mathivanan says Expedia “appears to be between a rock and a hard place from market share losses and margin compression during a downturn in 2023.”