BUZZ-Wedbush trims online travel firms' price target on AI risk concerns

Reuters02-06 22:29
BUZZ-Wedbush trims online travel firms' price target on AI risk concerns

** Wedbush lowers price targets on online travel companies on risks from exposure to AI-enabled disintermediation

** Brokerage says while booking windows have started to extend and consumers are reporting longer lengths of stay, AI could hurt long-term business for intermediaries like Airbnb ABNB.O, Booking Holdings BKNG.O, Expedia Group EXPE.O and Tripadvisor TRIP.O

** Adds that Expedia is most exposed to disintermediation given the company's relative exposure to a concentrated supply of hotel and accommodation chains

** Says it expects Airbnb to be the least exposed to displacement given co's fragmentation of its host and supply base

** Wedbush says it is most positive on BKNG as co's geographic diversification limits exposure to pockets of softness or a weaker consumer

** Following are the new PTs:

Company

New PT

Old PT

Airbnb ABNB.O

$130

$135

Tripadvisor TRIP.O

$15

$18

Booking Holdings BKNG.O

$5500

$6000

Expedia EXPE.O

$260

$290

(Reporting by Parth Chandna)

((Parth.Chandna@thomsonreuters.com;))

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