UPDATE: Deutsche Bank Upgrades Priceline.com to Buy on Multiple Positive Factors

In a report published Monday, Deutsche Bank analyst Ross Sandler upgraded the rating on Priceline.com

from Hold to Buy, and raised the price target from $715.00 to $900.00. In the report, Sandler noted, “PCLN is the clear global secular winner in the OTA space, owing to its unique supply footprint, industry-high growth rates and margins, and over-exposure to our preferred international hotel bookings. We believe it should start to see margins stabilize in 2H13 as it comps the negative ROI period that began in mid-2012. Earnings should grow at a 20% CAGR over the next 3 years, which should allow PCLN's multiple to expand back to 20x EPS, the upper end of its historic range. Our prior concerns around competition and margin compression are well understood by consensus, hence if trajectory improves, we see upside to consensus.” Priceline.com closed on Friday at $813.66.