Prudential Cuts Travelocity.com Target

The online travel company lowered its fourth quarter revenue guidance about 9%

Prudential cut its price target on Travelocity.com (TVLY ) to $25 from $27 after the online travel company lowered its fourth quarter revenue guidance to $68 million, or about 9% below previous figures. The company cited slow sales of airline tickets during the holiday season.

Analyst Mark Rowen said he believes the preannouncement may be an early negative indicator, reflecting cutbacks in airline industry capacity resulting from the Sep. 11 attack. He also noted that Travelocity is in a long term online marketing partnership with Continental Airlines, which he believes is important deal for company, as Continental has, in effect, retracted its zero-commission stance. Rowen thinks it is a win-win deal and that Travelocity will receive payment in form of commissions.

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