Market Overview

UPDATE: Morgan Stanley Downgrades Priceline.com to Equal-Weight on Rising Costs

Share:
Related PCLN
Cities Where Airbnb Is Most Useful (Take Heed, Rio Olympics Attendees)
Here Are The 14 Stocks Morgan Stanley Wants You To Focus On During Q2 Earnings

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

DateFirmActionFromTo
Jun 2016Morgan StanleyUpgradesEqual-weightOverweight
Jun 2016BarclaysUpgradesEqual-weightOverweight
May 2016BarclaysMaintainsEqualweight

View More Analyst Ratings for PCLN
View the Latest Analyst Ratings

Posted-In: Morgan StanleyAnalyst Color Downgrades Analyst Ratings

 

Related Articles (PCLN)

View Comments and Join the Discussion!