Piper Jaffray Defends Priceline.com (PCLN) Following Post-Earnings Sell-Off

May 9, 2007 12:34 PM EDT Send to a Friend
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Price: $1,130.98 --0%

Rating Summary:
    27 Buy, 3 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 1 | Down: 0 | New: 2
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Piper Jaffray comments on Priceline.com (Nasdaq: PCLN) saying today's sell-off following strong Q1 results is unwarranted.

Analyst Aaron M. Kessler, said, "We believe the sell off this morning is an overreaction as there were no negative data points on the conference call that would warrant a sell off of this magnitude. The one negative that could be perceived was the lower domestic gross bookings, although we would note that this was a strategic decision by PCLN not to go after low margin business, and in fact domestic gross profit growth was solid at 11% y/y vs. approximately 9% in 2006."

Shares of Priceline.com are about 9% lower today after the company matched its recently raised first quarter guidance and provided an upbeat outlook. Shares were trading at $57.50 prior to the raised guidance on 05/04, they moved to $64.05 at the close of trading yesterday and today they are back down to $58.60.

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