Barclays on U.S. Internet: Initiating on the Online Travel Sub-Sector: Monetizing the Long Tail of Travel
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Price: $1,905.64 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 6
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 6
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Barclays on U.S. Internet: Initiating on the Online Travel Sub-Sector: Monetizing the Long Tail of Travel
Barclays analyst, Ronald V. Josey, said, "We are initiating coverage of the Online Travel sub-sector with a Overweight rating on Priceline (Nasdaq: PCLN) and Equal Weight ratings on Expedia (Nasdaq: EXPE) and Orbitz (NYSE: OWW). This is in the context of a Positive rating of the Internet sector overall. Given the fragmented market for hotels and travel globally, we believe the Internet is very well positioned to act as the main distribution network for travel reservations."
"While the OTAs are benefiting from the proliferation of smarter mobile devices, higher bandwidth speeds, and increased Internet penetration globally, we believe there are two specific OTA trends that will power growth over the long term: 1) Hotel bookings and 2) Geographic expansion across Europe, APAC, and Latin America."
"While we believe the secular trends in travel are favorable, the current macro
environment could impact overall bookings and profitability. Our estimates assume a somewhat weaker macro environment in 2H and based on our scenario analysis, we believe PCLN and EXPE shares may already be pricing in relatively bearish scenarios vs. '08-10 trading multiples."
Barclays analyst, Ronald V. Josey, said, "We are initiating coverage of the Online Travel sub-sector with a Overweight rating on Priceline (Nasdaq: PCLN) and Equal Weight ratings on Expedia (Nasdaq: EXPE) and Orbitz (NYSE: OWW). This is in the context of a Positive rating of the Internet sector overall. Given the fragmented market for hotels and travel globally, we believe the Internet is very well positioned to act as the main distribution network for travel reservations."
"While the OTAs are benefiting from the proliferation of smarter mobile devices, higher bandwidth speeds, and increased Internet penetration globally, we believe there are two specific OTA trends that will power growth over the long term: 1) Hotel bookings and 2) Geographic expansion across Europe, APAC, and Latin America."
"While we believe the secular trends in travel are favorable, the current macro
environment could impact overall bookings and profitability. Our estimates assume a somewhat weaker macro environment in 2H and based on our scenario analysis, we believe PCLN and EXPE shares may already be pricing in relatively bearish scenarios vs. '08-10 trading multiples."
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