Deutsche Bank Lowers Target on (PCLN) to $715, Worries Over Margin Compression

May 10, 2013 10:57 AM EDT
Get Alerts PCLN Hot Sheet
Price: $1,540.13 -0.37%

Rating Summary:
    31 Buy, 8 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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Deutsche Bank today maintained a Hold rating on (NASDAQ: PCLN) and lowered its price target to $715.00 (from $745.00). Analyst Ross Sandler expressed concern about margin compression.

"Both PCLN and Expedia (Nasdaq: EXPE) continue to face de-leverage in their business models from: 1) inflationary pressure in customer acquisition, 2) mix shift to lower margin regions, and 3) mix shift to paid channels vs. organic," said Sandler.

Comments follow's Q1 report yesterday. While EPS topped views, guidance was cautious.

"We continue to view PCLN’s valuation as compelling, but decelerating growth and margin compression in 2Q13 keep us on the sidelines for now," added the analyst.

For an analyst ratings summary and ratings history on (NASDAQ: PCLN) click here. For more ratings news on click here.

Shares of closed at $737.50 yesterday.

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