Nomura Securities Previews Online Travel Stocks (PCLN) (EXPE) (OWW) (TRIP)

Nomura Securities previewed U.S. online travel stocks ahead of Q3 results:

Analyst Brian Nowark notes: "The online travel space has been a laggard in 3Q, as PCLN, TRIP, and OWW have all underperformed the S&P 500 (between -4,540bp and -1,810bp). Only EXPE (+800bp of outperformance) has beaten the market. We focus on three key themes: 1) Steady US results and more bifurcation toward two larger players, we expect EXPE and PCLN to post 16% domestic room night growth, while OWW’s is forecast to grow 2%; 2) Slowing growth is coming in Europe, where we are reducing our 2H:12 European room night estimates, now expecting them to grow 17%, vs. 23% in 1H:12; 3) Focus on revisions, where we favor PCLN due to its growing global presence."

• priceline.com (NASDAQ: PCLN) (Buy) price target of $730.00 (from $740.00)
  
• Expedia (NASDAQ: EXPE) (Neutral) price target of $56 (from $54)
  
• Orbitz Worldwide (NYSE: OWW) (Neutral) price target $3
  
• TripAdvisor Inc. (NASDAQ: TRIP) (Neutral) price target from $40 to $41

For an analyst ratings summary and ratings history on priceline.com click here. For more ratings news on priceline.com click here.

Shares of priceline.com closed at $569.04 yesterday.

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