UPDATE: Benchmark Reduces PT to $725 on Priceline.com Post Q3 Guidance

Benchmark reiterated its Buy rating on Priceline.com

but reduced its rice target from $840 to $725. Benchmark said, "We believe 3Q guidance includes management's view of a global “worst case scenario,” anticipating 3Q results will come in at or above the high end of the range, but still representing a meaningful deceleration in growth. We are reducing our FY12 gross bookings estimate from 38% to 25% projected growth, with our proforma EBITDA estimate coming down by nearly $150 million to $1.9 billion, up 28% y/y. Our 2012 EPS estimate falls from $32.50 to $30.25. Our FY13 growth rate assumptions remain relatively unchanged, but our EPS estimate falls from $41 to $38 as a result of our reduced 2012 estimates." Priceline.com closed at $679.80 on Tuesday.