UPDATE: Deutsche Bank Downgrades Kayak Software to Hold, Raises PT

In a report published Friday, Deutsche Bank downgraded its rating on Kayak Software Corp.

to Hold, but raised its price target from $37.00 to $40.00. Deutsche Bank noted, “Yesterday after the close KAYAK agreed to be acquired by Priceline.com for $40 per share in cash/stock, a 29% premium valuing KAYAK at $1.8B ($1.6B net of cash), and above our $37 price target. As a result, we are lowering our rating to a Hold. We believe the deal helps KAYAK with two big initiatives: 1) it puts Priceline in the booking path and 2) helps with international expansion. Furthermore, we believe there are significant revenue synergies between the two companies.” Kayak Software Corp. closed on Thursday at $31.04.