Click to join an upcoming live event

Turn off Ads (click)

Click on your language to translate this article:

Afrikaans Afrikaans Albanian Albanian Amharic Amharic Arabic Arabic Armenian Armenian Azerbaijani Azerbaijani Basque Basque Belarusian Belarusian Bengali Bengali Bosnian Bosnian Bulgarian Bulgarian Catalan Catalan Cebuano Cebuano Chichewa Chichewa Chinese (Simplified) Chinese (Simplified) Chinese (Traditional) Chinese (Traditional) Corsican Corsican Croatian Croatian Czech Czech Danish Danish Dutch Dutch English English Esperanto Esperanto Estonian Estonian Filipino Filipino Finnish Finnish French French Frisian Frisian Galician Galician Georgian Georgian German German Greek Greek Gujarati Gujarati Haitian Creole Haitian Creole Hausa Hausa Hawaiian Hawaiian Hebrew Hebrew Hindi Hindi Hmong Hmong Hungarian Hungarian Icelandic Icelandic Igbo Igbo Indonesian Indonesian Irish Irish Italian Italian Japanese Japanese Javanese Javanese Kannada Kannada Kazakh Kazakh Khmer Khmer Korean Korean Kurdish (Kurmanji) Kurdish (Kurmanji) Kyrgyz Kyrgyz Lao Lao Latin Latin Latvian Latvian Lithuanian Lithuanian Luxembourgish Luxembourgish Macedonian Macedonian Malagasy Malagasy Malay Malay Malayalam Malayalam Maltese Maltese Maori Maori Marathi Marathi Mongolian Mongolian Myanmar (Burmese) Myanmar (Burmese) Nepali Nepali Norwegian Norwegian Pashto Pashto Persian Persian Polish Polish Portuguese Portuguese Punjabi Punjabi Romanian Romanian Russian Russian Samoan Samoan Scottish Gaelic Scottish Gaelic Serbian Serbian Sesotho Sesotho Shona Shona Sindhi Sindhi Sinhala Sinhala Slovak Slovak Slovenian Slovenian Somali Somali Spanish Spanish Sudanese Sudanese Swahili Swahili Swedish Swedish Tajik Tajik Tamil Tamil Telugu Telugu Thai Thai Turkish Turkish Ukrainian Ukrainian Urdu Urdu Uzbek Uzbek Vietnamese Vietnamese Welsh Welsh Xhosa Xhosa Yiddish Yiddish Yoruba Yoruba Zulu Zulu
Travel News

Ahead of the Bell: Online travel sites

13_109
Avatar
Written by editor

NEW YORK – Orbitz Worldwide Inc. was downgraded and earnings estimates for online travel competitors Priceline.com Inc. and Expedia Inc.

NEW YORK – Orbitz Worldwide Inc. was downgraded and earnings estimates for online travel competitors Priceline.com Inc. and Expedia Inc. were cut Thursday, as analysts pointed to a weaker travel market and a stronger dollar.

Piper Jaffray analyst Michael Olson cut his rating on Orbitz to “Sell” from “Neutral,” saying travel industry fundamentals weakened in September, particularly on the domestic level.

Orbitz is more concentrated on domestic business than Expedia and Priceline, Olson wrote. He lowered his price target on the shares from $5.50 to $4.

Olson was more positive on Priceline, keeping his “Buy” rating, but lowering his share price target to $83 from $125. He believes the company has the best position of the U.S. online travel companies as the market slows, because 60 percent of its bookings are outside the U.S. and its sales model is attractive to cost-conscious consumers.

Goldman Sachs analysts Jennifer Watson and James Mitchell lowered their 2008, 2009 and 2010 earnings estimates for Priceline because of the stronger dollar and weak travel outlook.

They said Priceline’s stock price already takes into account third-quarter results that are likely to miss analyst expectations.

Piper Jaffray’s Olson kept a “Neutral” rating on Expedia while cutting his earnings estimates. He also slashed his price target on the stock from $22 to $13.50.

Expedia is improving its exposure to the European market by buying Venere, and generates a large amount of free cash flow, but will be affected by industry fundamentals, he said.