02:59 PM EST, 11/08/2024 (MT Newswires) -- Expedia Group ( EXPE ) had a good Q3 as its vacation rental unit Vrbo returned to growth, RBC Capital Markets said in a note Friday.

Expedia ( EXPE ) on late Thursday posted Q3 adjusted earnings of $6.13 per share, slightly ahead of the Capital IQ consensus of $6.12.

Revenue for the quarter ended Sept. 30 was $4.06 billion, up from $3.93 billion a year earlier, but below the Capital IQ consensus estimate of $4.11 billion.

RBC said it expects momentum in Vrbo to continue in the "new few quarters" as the business accelerates marketing spend and takes advantage of improving travel demand. "The Vrbo acceleration story is game on with it returning to growth for the first time in over a year," the brokerage said.

RBC said it also liked the newer management's tone on business prospects versus the prior team.

The firm raised its price target for Expedia ( EXPE ) to $185 from $140 with a sector perform rating.

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