Sector Report: Online Travel

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Oct. 23 (Bloomberg) -- S&P Capital Head of Tech Sector Equity Research Scott Kessler discusses online travel with Deirdre Bolton on Bloomberg Television's "Money Moves." (Source: Bloomberg)

We have really seen some big gains in the stocks for the year.

Do you think we are going to continue to see this upside?

You guys have a neutral rating on most of the stocks.

We do, julie.

We actually cover three names in this category.

You referenced a trip advisor, our 12 month target price is $77. we do see some upside.

It is really a strong organic growth the story.

They have been making improvements to the operating model.

I have been more active on the acquisition front over the last 3-6 months than in the prior history.

Then you look at priceline, that has been just a tremendous stock and business performer, really since the dot com bubble burst.

Over 10 years, i would argue it is among the best performing stocks in the market.

That is also an interesting story.

Not just because of how they have done in terms of execution but also because they just completed the kayak acquisition.

It will be notable to see how they talk about what they're going to be doing.

And then expedia, the other stocks we are talking about are up more than 70% year to date.

Expedia is actually down 20%. our target price is $53. the stock is around $47. a lot of people look bad as they troubled business -- but at that as a troubled business.

You look at priceline in the gains they have seen, are there any risks besides the fact they are pricey?

Are there any risks fundamentally?

The most obvious two that come to mind are competition.

Clearly, while there is a secular trend -- transition going from traditional ways to purchase travel to judge it always to purchase travel, that is benefiting trip advisor and priceline.

But the notion expedia indicated , they are seeing a lot of competition domestically, probably from priceline.

That indicates you could see some pricing pressure that could affect everyone in the market.

And a lot of exposure to europe for these companies.

That is something to be mindful of.

Mindful of as well.

All right, scott, thank you very much.

We will be on the markets

This text has been automatically generated. It may not be 100% accurate.


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