Kaufman Bros. Maintains a 'Buy' on Priceline.com (PCLN); Recent Sell Off Creates Buying Opportunity

November 2, 2009 7:27 AM EST

Kaufman Bros. maintains a 'Buy' on Priceline.com Inc. (Nasdaq: PCLN), raises price target from $180 to $200.

Kaufman analyst says, "We expect a solid 3Q for Priceline driven by continued share gains both domestically and internationally. We believe the recent share weakness (shares down approximately 13% from recent highs) has created an attractive entry point for investors with shares trading at 16.5x our new 2010 pro forma EPS vs. 15%-20% long-term growth. Additionally, we believe shares of PCLN declined last week following concerns over declines in Expedia's revenue margins - we do not expect PCLN to face the same issue."

"For 3Q, we now estimate domestic bookings growth of 25% (vs. 20% previously) and international bookings growth of 32% (vs. 28% previously). We now estimate 3Q revenues of $721 million and $2.95 vs. our previous estimates of $693 million and $2.81. Consensus for 3Q is $692 million and $2.90 while guidance is $668 million-$691 million (19%-23% Y/Y) and $2.70-$2.85. For 2009, we move from $2,265 million and $7.42 to $2,302 million and $7.60 (vs. Street at $7.51). For 2010, we move from $2,675 million and $8.97 to $2,802 million and $9.49 (vs. Street at $9.11)."

To see more analyst ratings on PCLN Click Here.

priceline.com Incorporated operates as an online travel company principally in the United States, Europe, and Asia.

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