Bank of America Merrill Lynch Names Their Priceline Price Target

In a note out this morning, analyst Justin Post at Bank of America Merrill Lynch raised his price target on shares of Priceline

to $1,315 from $1,265 based on 19 times 2016 EPS estimates. Mr. Post goes on to say: 1) Our updated global hotel market share analysis indicates PCLN has only ~13% global share which leaves room for further penetration 2) we estimate PCLN is taking share from offline and regional players at more than 2x the rate of EXPE gains 3) we think PCLN is still in the early stages of capitalizing on its OPEN acquisition and CTRP investment; 4) solid track record of capital deployment; and 5) P/E valuation is attractive relative to unit growth and a discount to travel peers. BOAML feels a 19 times forward P/E multiple is appropriate given Priceline's leadership position in the global online travel sector, track record of EPS surprises and increased access to the China via the Ctrip

investment. Shares of PCLN are currently down 2.06 percent at 1056.20.