Truist cuts Expedia stock price target to $288 on Muse entry risks

Truist Securities has reduced its price target for Expedia Group Inc. (EXPE) to $288, down from $309, while maintaining a Hold rating on the stock. The current trading price of EXPE stands at $264.92, which is below the new target. Truist highlights the company's strong U.S. accommodation demand and interest rates as drivers for second-half 2026 earnings growth.

Additionally, Expedia's B2B and self-help initiatives are expected to contribute to growth. However, the firm identifies Muse's entry into the North American market as a downside risk that partially offsets the company's near-term earnings tailwinds. Truist emphasizes that the positive trends supporting Expedia's second-half performance may continue into 2027.

The stock's financial health is underscored by a perfect Piotroski Score of 9 and a gross profit margin of 90%. The analyst's caution stems from limited guidance detail and messaging, affecting both buy-side and sell-side sentiment. Expedia Group reported impressive financial results for Q2 2026, with gross bookings up 12% year-over-year and revenue increasing 14%.

Adjusted EBITDA also grew by 23% to $1.12 billion. Other analysts, such as UBS and Susquehanna, have raised their price targets for Expedia, citing margin expansion and better-than-expected guidance. Meanwhile, competitors like Morgan Stanley and Rosenblatt Securities have initiated coverage with Underweight and Neutral ratings, respectively, noting Expedia's multi-year turnaround and strategic shift towards advertising and B2B growth.

Expedia's competitive landscape is further impacted by Meta Platforms' AI agent, Muse, which is touted for its travel booking capabilities and significant consumer reach.