Priceline.com rises after strong 4Q results

NEW YORK

Shares of Priceline.com Inc. jumped to a new year high Thursday after the online travel company reported its fourth-quarter profit more than doubled.

Its shares were up $21.08, or 9.9 percent, to $233.95 in afternoon trading. They earlier traded at $235.36, eclipsing a previous 52-week high of $231.49 set Dec. 28.

The company reported late Wednesday that its profit in the fourth quarter climbed to $1.55 per share from 75 cents per share in the same period of 2008, while revenue improved to $541.8 million from $406 million. Results beat analyst expectations.

Citi analyst Mark S. Mahaney wrote in a note to clients Thursday that Priceline's business in Europe has been strong, and its name-your-own-price model in the U.S. is "right for the times."

Not counting the impact of currency fluctuations, nights booked on its European Web site rose 70 percent from a year earlier, he wrote.

He left his "Buy" rating in place, saying Priceline has sustainable business model advantages in Europe and a defensive hedge in the U.S. with the name-your-own-price approach. He also wrote that Priceline is taking market share from competitors.

Elsewhere, UBS analyst Kevin Crissey maintained his "Neutral" rating and raised his share price target to $235 from $215.