UPDATE: Stifel Downgrades Priceline On Headwinds In 2015

In a report published Thursday, Stifel analyst Scott Devitt downgraded the rating on Priceline Group Inc PCLN from Buy to Hold, and removed the $87.00 price target.

In the report, Stifel noted, “We are downgrading Priceline shares from a Buy to a Hold with a $1,160 fair value. While we continue to favor Priceline's leading industry position, long-term prospects, and strong organic execution, we believe that three key headwinds reduce the attractiveness of shares on a risk-to-reward basis: (1) FX negatively impacting 2015 results, (2) marketing deleveraging as a percent of gross profit, contracting margins, and (3) increasing competition limiting global market share gains. The online travel market continues to benefit from secular tailwinds such as mobile adoption, but we believe that shifts in the competitive landscape and macro headwinds warrant a moderate 2015 outlook.”

Priceline closed on Wednesday at $1,069.57.