UPDATE: Deutsche Bank Raises PT on Priceline.com on Solid Bookings Growth
In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Priceline.com (NASDAQ: PCLN), and raised its price target from $710.00 to $745.00.
Deutsche Bank noted, “Priceline reported gross profit and EBITDA 0% and 1.6% above our estimates after adjusting out charges, and within the guided range for the second time in the last three years (every other quarter handily exceeded the high end). The company is seeing solid bookings growth, but similar to EXPE, PCLN's business model is deleveraging from lower marketing ROI and mix to lower margin international regions. We don't expect these trends to reverse course, which is limiting the flow through from the increased hotel volumes. We have raised our 2013 EBITDA by 4%, shares remain Hold rated.”
Priceline.com closed on Tuesday at $678.49.
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