Ahead of the Bell: Analysts raise Priceline.com price target

NEW YORK—Analysts boosted price targets and estimates on Priceline.com Inc. Friday, the day after the online travel company swung to a first-quarter profit and guided for fiscal year results above Wall Street's estimates.

"Priceline's geographic diversity, low-cost model, broad product offering, and attractive value proposition are helping it to offset economic uncertainty and competition," Goldman Sachs analyst Jennifer Watson said in a note to clients.

Watson raised her price target to $155 from $140 and reiterated a "Buy" rating. Her new target implies she expects the stock to jump 25 percent over Thursday's $123.78 close.

Priceline's shares will likely continue to be a premium over their competitors due in part to market share gains in mature areas and Europe and Asia, she said.

For 2008, Watson now expects earnings of $5.55 per share, compared with a previous $5.05 estimate. Analysts polled by Thomson Financial expect, on average, earnings of $5.11 per share for the year.

Citi Investment Research analyst Mark S. Mahaney raised his price target to $161 from $137 and his 2008 estimate to $5.59 per share from $5.20 per share.

Priceline is the most defensive Internet stock given its strong European network and management, among other factors, he said. But Mahaney maintained a "Hold" rating, saying he prefers to wait for a better entry point on shares.

Banc of America Securities analyst Brian P. Fitzgerald boosted his price target to $155 from $125 and kept a "Buy" rating.

"Priceline should continue to outperform as it penetrates the growing international online travel market and captures domestic share," Fitzgerald said in a client note.

Shares rose $16.42, or 13.3 percent, to $140.20 in premarket trading Friday.