Online travel platform Expedia (EXPE) is in focus Thursday after two Wall Street firms issued Buy recommendations on the stock, with Pacific Crest calling it the most attractive name in trip booking amid rebounding consumer demand for travel.

SUSQUEHANNA SAYS ONLINE TRAVEL MARKET ATTRACTIVE: Susquehanna analyst Shyam Patil initiated coverage of Expedia and Priceline (PCLN) with Positive ratings, and started Tripadvisor (TRIP) at Neutral. The market backdrop is "attractive" for online travel agencies, he argues, explaining that hotel room nights and private accommodations remain large opportunities for the sector, while take rates are "stabilizing" and new direct booking incentives from the airlines and hotel operators themselves "don't seem to be having much impact" on the industry. On Expedia in particular, the analyst sees three major near-term catalysts: Synergies from the Orbitz and HomeAway acquisitions - which could drive analyst estimates upward - and the upcoming Trivago IPO, which Patil says could add as much as $8-$16 per share to Expedia. The analyst cautions that he's taking a "slightly more conservative stance" with his near-term estimates on Expedia ahead of its Q3 report, including forecasting organic room nights at the lower end of the company's guidance. Patel sets a $160 target on the shares.

PAC CREST SAYS EXPEDIA BEST POSITIONED: Pacific Crest's Brad Erickson upgraded Expedia to Overweight with a $160 price target, saying his checks with property owners "indicate overall high satisfactions" with the company's HomeAway platform, which could signal vacation rentals becoming a "key upside driver" for the stock. Calling Expedia the "best longer-term risk/reward in the space," the analyst is bullish on continued secular tailwinds for the online travel industry and says U.S. travel trends "improved decidedly" in September after an August lull. With Expedia's earnings report fast approaching, Erickson cautioned that he's "not making a call on the quarter."

PRICE ACTION: Expedia, which touched $128 in early trading, is now trading down 0.5% to $124 per share. The company is scheduled to report third quarter results after the market close on October 27.