LodgeNet Interactive "accumulate," target price reduced

04/01/08 - CL King

NEW YORK, April 1 (newratings.com) - Analyst James B Boyle of CL King maintains his "accumulate" rating on LodgeNet Interactive Corporation (LNET). The target price has been reduced from $12.50 to $9.50.

In a research note published yesterday, the analyst mentions that lodging trends in early-2008 indicate that Revenues Per Available Room (RevPar) and occupancy have weakened substantially in the first eleven weeks. Apparent recessionary trends seem to be adversely impacting the performance of LodgeNet Interactive’s hotels and movie purchasing, the analyst says. Although LodgeNet Interactive’s diversification revenues are growing substantially, they constituted an insignificant portion of the company’s revenues in 2007, CL King adds.