Priceline (PCLN) PT Raised to $1750 at RBC, Expedia (EXPE) to $165
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RBC Capital analyst Mark S. Mahaney raised his price target on Outperform-rated The Priceline Group (NASDAQ: PCLN) to $1,750 (from $1,600) and Expedia (NASDAQ: EXPE) to $165 (from $160) as the roll forward estimates following their 3rd Annual U.S. Online Travel survey and 1st UK Online Travel survey. The analyst said they now slightly prefer PCLN.
1) Online Is A Major & Growing Research And Booking Channel For Travel– 58% of U.S. travelers reported making an Online booking for Leisure travel over the past year with 50% stating they expect to use OTAs more over the next 12 months.
2) Expedia Remains Far And Away the Leading OTA In U.S. Market – Expedia was selected by a 2-to-1 margin over the #2 offerings in terms of Price, Selection, and Ease of Use. And EXPE had by far the highest response rate in terms of sites used most often to research and book travel.
3) Booking.com Appears to Be Gaining Traction – As a research site, Booking.com was selected by 24% of U.S. respondents (up from 16% in 2015). And as a booking site, Booking.com was selected by 16% of respondents (up from 7% in 2015).
4) Alternative Accommodations Are Material Options for Travelers-- 43% of respondents indicated they stayed at an AA in the last 12 months (up from 34% in 2015). Further, leisure travelers who stayed in AAs show strong intentions to do so again - 75% indicate they plan on booking an AA in the next year (up from 68% in 2015).
5) Airbnb Has Emerged as Leading AA Provider-- 30% chose Airbnb as an AA option they use most often (vs. 18% in 2014). EXPE and Booking.com have also emerged as strong AA booking options – 26% chose EXPE (vs. 21% in 2014) and 24% chose Booking (up dramatically vs. 4% in 2014).
Meanwhile, UK Online travel trends and metrics are largely consistent with the U.S.
Shares of The Priceline Group closed at $1490.44 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesRBC Capital, Mark Mahaney
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