Online travel stocks traded mixed Friday, with Priceline.com Inc.'s stock rising to a multiyear high the day after the company reported swinging to a first-quarter profit and predicted full-year adjusted earnings above analysts' expectations.
Priceline shares rose $18.80, or 15.2 percent, to $142.58. Earlier, the stock traded as high as $144.34 _ its highest since September 2000.
Several analysts responded to the report by increasing their price targets for the company, including Piper Jaffray analyst Aaron M. Kessler, who increased his target to $175 from $147.
Kessler, who rates the stock "Buy," said in a client note that the company "reported a very strong Q1 with strength across the board."
He also reiterated his choice of the company as a "Top eCommerce Pick for 2007," noting factors such as strong growth prospects, domestic share gains, and the expectation that it will keep beating estimates.
Goldman Sachs analyst Jennifer Watson increased her price target to $155 from $140 and kept her "Buy" rating for the stock in a note to investors.
"In our view, Priceline's geographic diversity, low-cost model, broad product offering, and attractive value proposition are helping it to offset economic uncertainty and competition," she said.
Meanwhile, shares of competitor Expedia Inc. declined 60 cents to $23.81.
Shares of Orbitz Worldwide Inc. slipped a penny to $7. A day before, the stock fell more than 10 percent after Piper analyst Kessler downgraded the stock to "Neutral" from "Buy" and lowered his price target to $8 from $10, citing a more challenging U.S. outlook for the online travel company.
Orbitz had reported on Wednesday that its first-quarter loss widened.
Elsewhere in the sector, American Depositary Shares of Chinese online travel company Ctrip.com International Ltd. fell $1.13 to $64.92 and ADS of peer eLong Inc. rose 12 cents to $9.48.
Terms & Conditions
RSS Headlines
Fool UK