Citing accelerating momentum in Priceline's business in Europe, Piper Jaffrey research analyst Aaron Kessler increased the price target on shares of the online travel booking company to $34 from $32.

To reflect strength in Europe, Priceline raised its fiscal 2006 earnings guidance to $1.60 to $1.70 per share and gross bookings of $2.9 billion to $3.1 billion, from $1.50 to $1.65 per share and gross bookings of $2.7 billion to $2.9 billion. The company said it thinks this guidance may be conservative given the strong international trends.

Priceline Europe showed organic growth acceleration of 102% year-over-year during the quarter, according to Kessler.

"We believe Priceline is gaining share internationally due to its supplier friendly offerings," he wrote in a Thursday note. "Management also noted on the call that it expects international to account for more than 50% of operating income in 2006."

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