Bank of America upgraded its rating on Expedia (EXPE) stock to Buy from Neutral while investment bank Robert Baird downgraded its rating on Rivian to Neutral from Outperform. Amid generally strong travel trends and positive data for tourism during Thanksgiving, Bank of America has become more upbeat on Expedia. The bank raised its price target on the shares to $221 from $187.
A traveler walking along a white-sand beach, a luxury resort in the background.
After conducting checks on credit cards and debit cards, the bank believes that U.S. travel trends are in the early stages of strengthening even further. The bank added that EXPE’s comps are expected to ease in 2025, while it can meet the Street’s target of 10% EBITDA growth by fiscal 2025. Further, a reporter on the Schwab Network noted that travel stocks have performed well since the U.S. presidential election.
Turning to Rivian (RIVN), Baird believes that the outlook for electric vehicles could deteriorate in the near term. The bank thinks that the fate of the Inflation Reduction Act, which includes tax credits for EVs, is uncertain. Moreover, electric vehicle sales could stagnate in the U.S., causing Rivian’s shares to struggle, Baird warned.
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Disclosure: None. This article is originally published at Insider Monkey.