Piper Jaffray Defends Priceline, Calls Sell-Off A Buying Opportunity

Shares of Priceline Group Inc PCLN tumbled on Tuesday following the company's weak third quarter results and troubling fourth quarter guidance.

Michael Olson of Piper Jaffray defended shares on Tuesday, noting the more than 8 percent drop in share prices creates a buying opportunity. The analyst notes that Priceline's fourth quarter guidance was "expected" and likely due to foreign exchange headwinds.

According to Olson, on a foreign exchange neutral basis, the company's midpoint of its fourth quarter international bookings growth is 20 percent, which is a conservative guidance considering the mixed macro-economic backdrop the company claimed it is operating in. The analyst adds that Priceline has on average surpassed the midpoint of its bookings by 6 percent.

Olson reiterated an Overweight rating on shares following the company's earnings report.

Shares of Priceline recently traded at $1,092.11, down 8.8 percent.