Piper Jaffray adds Priceline as Internet top pick

(Reuters) - Investment Bank Piper Jaffray added online travel agency Priceline Inc to its list of Internet top picks, in part due to expectations of strong growth in Europe.

Piper Jaffray said European operations, which account for about 70 percent of the company's operating profit, benefited from a sequential rise in May European discount airline traffic that could offset the slowdown in the United States.

"International travel (especially Europe to U.S.) is becoming a larger part of Priceline's business, and should help Priceline continue to outpace industry growth," said analyst Aaron Kessler, who maintained a "buy" rating and a price target of $175 on the stock.

Kessler also expects the European hotel market to be much more resilient than that of the U.S. market, given higher priority Europeans put on leisure travel and the lower costs of getting to destinations in Europe.

Shares of the company were up $2.43 at $128.02 in midday trade Wednesday on Nasdaq.

(Reporting by Kuganandhan Paramanandan in Bangalore; Editing by Amitha Rajan)