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Credit Suisse Lowers Price Target For Priceline Group Amid FX Headwinds

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Credit Suisse lowered its price target for Priceline Group Inc. (NASDAQ: PCLN) on Wednesday from $1600 to $1550.

Analysts led by Dean Prissman reiterated an "Outperform [rating], which is predicated on the expectation that PCLN will remain an open-ended growth story."

Regarding foreign exchange concerns, the report noted that the "US dollar has demonstrated broad-based strength," and that "(1) The magnitude of this strength (relative to the USD/EUR rate) in key seasonal travel markets, such as Southeast Asia and Brazil is less pronounced (2) We believe Booking’s US efforts continue to pick-up momentum, and are hence an offset. As such we lower our International Bookings and Adjust EBITDA estimates for 4Q14 by 500bps vs. a rate equivalent to the 700bps decline seen in the EUR/USD rate."

Prissman concluded that "through our estimate changes we decrease our DCF-derived target price to $1,550 from $1,600 previously. For our DCF, we use a WACC of 10 percent and a terminal growth expectation of 3 percent."

Priceline Group Inc recently traded at $1032.00, down 1.7 percent.

Latest Ratings for PCLN

DateFirmActionFromTo
Feb 2018Deutsche BankMaintainsHoldHold
Jan 2018Wells FargoMaintainsMarket PerformMarket Perform
Dec 2017MKM PartnersDowngradesBuyNeutral

View More Analyst Ratings for PCLN
View the Latest Analyst Ratings

Posted-In: Credit Suisse Dean PrissmanAnalyst Color Price Target Reiteration Analyst Ratings

 

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