UPDATE: Morgan Stanley Downgrades Priceline.com to Equal-Weight on Rising Costs
Morgan Stanley downgraded Priceline.com Incorporated (NASDAQ: PCLN) from Overweight to Equal-weight and lowered the price target from $750.00 to $730.00.
Morgan Stanley commented, "Over the next three years, we expect PCLN to grow bookings at a 19% CAGR and EBITDA margins to contract by 220bps. PCLN is entering a new landscape with a strong number two competitor in Europe (Expedia, Equal-weight). We expect greater online advertising deleverage due to a more competitive environment for paid search marketing, Google's travel initiatives and lower advertising ROI in newer markets. Furthermore, the rapid shift to mobile bookings is a threat to PCLN given its core expertise lies in desktop SEM."
Priceline.com closed at $695.09 on Wednesday.
Latest Ratings for PCLN
|Jan 2015||Deutsche Bank||Maintains||Buy|
|Jan 2015||Stifel Nicolaus||Downgrades||Buy|
|Dec 2014||Bank of America||Maintains||Buy|
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