UPDATE: Benchmark Company Reiterates Buy Rating, Raises PT on Priceline.com Following Strong 2Q Report

In a report published Friday, Benchmark Company analyst Daniel L. Kurnos reiterated a Buy rating on Priceline.com PCLN, and raised the price target from $800.00 to $1,100.00. In the report, Benchmark Company noted, “Priceline (PCLN-Buy, PT from $800 to $1,100) reported another quarter which exceeded expectations and company guidance, driven by domestic share gains through Booking.com and Priceline.com along with strong international supply growth and increased market penetration. Room-night growth held firm at 38% for the third consecutive quarter despite management's ongoing warnings that growth was expected to moderate as the business increased in size, while rental car day growth accelerated 3% q/q to 46% y/y. As a result, revenue growth of 27% to $1.68 billion was well above the 15-22% guidance range with adjusted EBITDA of $621 million, up 26% y/y, $25 million above consensus and the high end of guidance, leading to adjusted EPS of $9.70. 3Q guidance again called for a moderation in growth, but mostly matched consensus at the high end, implying upside to 3Q numbers given Priceline's historically conservative outlooks. With Booking.com making headway domestically, international growth remaining elevated despite macro pressures and Kayak set to be rolled out on a larger scale, we believe Priceline will be able to maintain its operating momentum.” Priceline.com closed on Thursday at $933.75.