CS First Boston Lifts Priceline.com Outlook

More attractive ticket prices and strong growth in hotels and rental cars helped the online travel agency to finally turn a profit

CS First Boston raised estimates on Priceline.com (PCLN ).

Analyst Jamie Kiggen says Q2 results beat estimates on a higher level of inventory at compelling prices and strong growth in hotels and rental cars. He says the company ended Q2 with $165.7 million in cash and marketable securities, up from $142.6 million in Q1 -- a $23.1 million cash increase that reflected a strong free-cash flow despite cash expenses of $2 million.

Kiggen raised his $322 million Q3 revenue estimate to $341 million and raised the $0.02 Q3 EPS estimate to $0.05 EPS. He also upped the $1.2 billion 2001 revenue estimate to $1.3 billion and boosted the $0.01 2001 loss estimate to $0.11 EPS.

While Q2 was impressive, Kiggen says he kept his hold rating on the belief much of the good news already is factored into the stock price.

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