Most online travel stocks declined Monday, with Orbitz Worldwide Inc. falling as a Citi Investment Research analyst started covering the stock with a “Hold” rating, citing strong competition.

In a client note, he wrote factors such as its valuation and general growth in the online travel space make Orbitz shares “potentially compelling” over time. Still, “substantial competition” from Expedia Inc.

In a separate note, Mahaney reiterated his “Buy” rating for Expedia shares, saying the company “provides broad exposure to online travel’s secular growth” and that the company’s execution is improving. He also said the stock is “very attractively” valued.

The analyst holds a $37 price target for the stock.Mahaney added that he sees potential for the company to announce a major share repurchase in the near future.

Tags: execution, expedia inc, investment research, orbitz, price target, research analyst, secular growth, stock, stocks, target, travel space, ubs, worldwide inc

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