UPDATE: Goldman Sachs Reiterates Buy Rating, Raises PT on Priceline.com on 4Q Results, 1Q Guidance
In a report published Wednesday, Goldman Sachs reiterated its Buy rating on Priceline.com (NASDAQ: PCLN), and raised its price target from $770.00 to $825.00.
Goldman Sachs noted, “Priceline reported 4Q gross bookings growth of 33% yoy vs. consensus and the high end of guidance at 28%. Non-GAAP EPS of $6.77 was above consensus of $6.53 and guidance of $6.12-$6.57. The outperformance was driven by International gross bookings reacceleration. The company guided bookings growth above consensus, but EBITDA and EPS more inline as declining advertising ROI's and investments in ad spending offset that acceleration. We continue to believe that Priceline is well positioned to benefit from the fastest growing segments of online travel and with the stock trading inline with the sector multiple despite faster growth, we believe the risk/reward remains favorable.”
Priceline.com closed on Tuesday at $678.49.
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