In a report published Friday, Benchmark Company analyst Daniel L. Kurnos reiterated a Buy rating on Priceline.com (NASDAQ PCLN), and raised the price target from $1,100.00 to $1,200.00.
In the report, Benchmark Company noted, “Priceline (PCLN-Buy, PT from $1,100 to $1,200) 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 moderated only 2% q/q to 36% despite management's ongoing warnings, although rental car day growth decelerated 19% q/q to 28% y/y, still representing share gains. As a result, revenue growth of 33% to $2.27 billion was well above the 23-30% guidance range with adjusted EBITDA of $1.11 billion, up 43% y/y, $60 million above consensus and the high end of guidance, leading to adjusted EPS of $17.30. 4Q 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. Furthermore, we do not anticipate the transition at CEO from Jeffery Boyd to Booking.com CEO Darren Houston will have a material impact on the business or its growth trajectory.”
Priceline.com closed on Thursday at $1,022.89.
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