Effects Of Weakening Euro To Be Minimal On PCLN
Analysts at Susquehanna Financial upgrade Priceline.com Inc (NASDAQ: PCLN) to "positive," while raising their estimates for the company. The target price for PCLN is set to $230.
According to Susquehanna Financial, the value of Priceline.com’s stock is declining due to the strength of the US dollar versus the euro. The analysts believe that the bottomline impact of the currency effects will be minimal for PCLN, given its highly variable cost structure. “As PCLN likely outperformed expectations for 4Q09, we view the change in currency as capping a small portion of the upside we might normally have seen to consensus estimates,” the analysts add.
“We expect Priceline to surpass 4Q09 expectations and see upside to consensus forecasts for 2010,” the analysts mention. Susquehanna Financial has raised its EPS estimates for 2009 and 2010 from $9.40 to $9.46 and from $7.05 to $7.20, respectively.
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