) to outperform from peer perform.
Analyst Jake Fuller says he sees three reasons to focus on Priceline now: 1) valuation; 2) growth is accelerating with recent additions; and 3) traffic trends could signal share gains. He says the company has improved its growth profile through a series of recent produce launches and acquisitions, which should drive three-year bookings and EBITDA growth of 10%, and 15%, respectively. Fuller believes domestic share gains and an international sales ramp could be positive in the third quarter after a disappointing second quarter. He expects $1.54 2006 EPS, ahead of the $1.45 Wall Street consensus, with the upside a function of rapid international expansion.