UPDATE: JP Morgan Raised PT to $835 on Priceline.com; Higher Bookings Offset Lower Margins

JP Morgan maintained Priceline.com

with a Overweight and raises the price target from $740.00 to $835.00. JP Morgan commented, "We continue to like the trade-off of lower margins for higher top-line growth given Priceline's large overall market opportunity, and also considering the company's large base and competitive operating environment. We believe Priceline is likely to see ~260 bps of EBITDA margin compression in 2013, but bookings that could continue to accelerate in 1H13 should more than offset this pressure, driving PF EPS higher. We're encouraged by Priceline's performance in a more challenging operating environment and also note the company faces easier comps over the next couple of quarters. We believe further bookings acceleration could drive multiple expansion going forward." Priceline.com closed at $678.49 on Tuesday.