UPDATE 1-Goldman raises price target on Amazon, 10 others

June 3 (Reuters) - Goldman Sachs raised its price targets
on several internet companies, including Amazon.com (AMZN.O)
and Yahoo Inc (YHOO.O), and said advertisers may increase
budgets for online media if they see queries, transactions and
order values improving.

Analyst James Mitchell said he sees a return to moderate
economic growth in the United States and overseas in 2010 and
added that he expects "internet sector revenue to share in the
macro recovery".

Mitchell sees online advertising spend growing 12 percent
year-over-year in 2010, after a fall of 4 percent in 2009,
driven by 10 percent growth in page views.

E-commerce and online travel spend are expected to grow 12
percent and 9 percent, respectively, in 2010, he said.

"Amazon is our favorite U.S. internet stock based on our
positive view of its franchise, online-offline expansion
strategy, share gains in a still-expanding e-commerce market,
and downloadable content initiatives," Mitchell wrote.

He expects Amazon to take share of whatever consumer
spending exists given low pricing, wide product selection and
digital initiatives such as its electronic reader Kindle.

COMPANY PRICE TARGET RATING

NEW OLD

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Amazon.com (AMZN.O) $103 $92 Buy

Yahoo Inc (YHOO.O) $17 $14 Neutral

Baidu Inc (BIDU.O) $300 $273 Buy

eBay (EBAY.O) $18 $16 Neutral

Expedia (EXPE.O) $17.90 $10.80 Neutral

GSI Commerce (GSIC.O) $17 $15 Neutral

Priceline.com (PCLN.O) $130 $120 Buy

VistaPrint (VPRT.O) $45 $39 Buy

WebMD Health Corp (WBMD.O) $22 $18 Sell

Orbitz Worldwide Inc (OWW.N) $1.50 $1 Sell

1-800-flowers.com (FLWS.O) $2.70 $2.30 Sell
(Reporting by Mansi Dutta in Bangalore; Editing by Himani
Sarkar)