Orbitz, Expedia, Priceline: Less Work Means Less Travel
If the economy is going to slow (which it is) and the jobless rate is going rise (which it is), you can safely conclude that people will be traveling less. That’s the core idea behind the call on the online travel sites by Bank of America’s Brian Pitz and Brian Fitzgerald, who today chopped their estimates and price targets on Orbitz (OWW), Expedia (EXPE) and Priceline (PCLN).
- Orbitz: Target to $5, from $8. EPS estimate for 2008 to loss of 17 cents from loss of 15 cents; 2009 to loss of seven cents from positive 19 cents.
- Expedia: Target to $19, from $30; 2008 to $1.38 from $1.40; 2009 to $1.42, from $1.59.
- Priceline: Target to $90, from $154; 2008 to $5.43, from $5.75; 2009 to $5.80, from $7.15.