Shares in Spain's eDreams fall after warning on competition

MADRID, June 23 (Reuters) - Shares in online travel agency Edreams Odigeo lost a third of their value on Monday after the company warned late last week that rising competition would hurt its business, prompting analysts to cut their forecasts for the stock.

Shares were down 32.6 percent at 5.9 euros ($8.0) at 0930 GMT.

JP Morgan (Other OTC: JPYYL - news) and Societe Generale (Paris: FR0000130809 - news) were among those who cut the target price on the shares, which became the first company to float on the Spanish stock exchange in three years when it listed in April.

The company, which offers travel deals in 42 countries through websites such as Go Voyages and Opodo, said the search business was becoming more competitive, particularly in its biggest markets of France, Italy and Spain.

"The company will need to invest more in this context than previously anticipated to attract clients," Societe Generale analyst Sabrina Blanc said in a note to clients.

Societe Generale, which has a buy rating, cut the target price to 11 euros from 13 euros, and downgraded profit estimates by 6 to 10 percent for the next three years.

Edreams said on Friday its 2013 earnings before interest, tax, depreciation and amortisation (EBITDA) fell 14 percent to 83.5 million euros, hit by one-off costs like its listing.

Losses for the period ending March improved 10 percent to 21.1 million euros.

($1 = 0.7366 Euros) (Reporting By Sarah Morris and Robert Hetz, editing by Louise Heavens)