NEW YORK (AP) — Shares of HomeAway Inc. rose Thursday after a Barclays analyst boosted his rating for the vacation rental website operator's stock, saying that the shares are poised for growth.
THE SPARK: Mark May raised his rating for HomeAway stock to "Overweight" from "Equal Weight."
THE BIG PICTURE: Austin, Texas-based HomeAway operates an online marketplace for the vacation rental industry.
May said that while the shares have underperformed so far this year, the company's revenue has risen about 22 percent over the same period and it's on track to meet the guidance it set at the beginning of the year.
HomeAway shares are about 17 percent from their October peak.
THE ANALYSIS: May said that in addition to its current attractive stock price, HomeAway should could have several opportunities to boost its revenue next year and beyond through the roll out of new products and services and the potential expansion of its listings and guest fees.
THE SHARES: Up $1.27, or 6 percent, to $22.83 in afternoon trading, after hitting at $23.44 earlier in the day.
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