UPDATE: Bank of America Upgrades Priceline.com to Buy on Upside Potential

Bank of America raised its rating on Priceline.com

from Neutral to Buy and increased its price objective from $690 to $770. Bank of America commented, "We are upgrading Priceline to Buy (from Neutral) based on: 1) We see more near-term upside potential to 2013 estimates than EXPE; 2) our updated Int'l market segment analysis suggests still strong growth over next three years, even with Europe decelerating; 3) a strong play on BofA Merrill Lynch's expectation for a modest 2H Europe recovery (and 2Q13 has an easier Int'l comp.); and 4) we have a positive view on the Kayak acquisition opportunity. We are rolling forward our price objective year to 2014 estimates from 2013, and our revised $770 price objective represents 21% upside." Priceline.com closed at $638.40 on Wednesday.