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Bank Of America Raises Priceline Price Target

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In a note out Tuesday morning, Bank of America analyst Justin Post raised his price target on shares of Priceline Group Inc (NASDAQ: PCLN) to $1,315 from $1,265 based on 19 times 2016 EPS estimates.

Post went on to say:

  • Our updated global hotel market share analysis indicates PCLN has only ~13% global share which leaves room for further penetration.
  • We estimate PCLN is taking share from offline and regional players at more than 2x the rate of EXPE gains.
  • We think PCLN is still in the early stages of capitalizing on its OPEN acquisition and CTRP investment.
  • Solid track record of capital deployment; and 5) P/E valuation is attractive relative to unit growth and a discount to travel peers.

Bank of America feels a 19 times forward P/E multiple is appropriate, given Priceline's leadership position in the global online travel sector, track record of EPS surprises and increased access to the China via the Ctrip investment.

Shares of Priceline were down 2.06 percent at $1,056.20.

Posted-In: Bank of America Justin PostAnalyst Color Price Target Analyst Ratings

 

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