Orbitz falls as analyst initiates 'Hold' rating

Shares of Chicago-based Orbitz fell 42 cents, or 5.9 percent, to $6.74. In the past year, the stock has traded between $4.51 and $15.

In a client note, Citi analyst Mark S. Mahaney initiated coverage with a $9.50 price target. Mahaney said the stock's valuation and general growth in the online travel market make the stock "potentially compelling" in the long term, but said that competition from Expedia and Priceline have cost it market share.

The analyst also pointed out risk factors like Orbitz's dependence on consumer booking fees and current weakness in the travel market.

He said that Expedia "offers similar valuation, but better execution track record, better international positioning, better advertising revenue platform, and stronger balance sheet."

He also sees Priceline as having "the best growth profile and execution track record," though he noted its valuation is not currently compelling.