Priceline (PCLN) PT Raised to $1750 at RBC, Expedia (EXPE) to $165

October 7, 2016 6:26 AM EDT
Get Alerts PCLN Hot Sheet
Price: $1,469.16 -0.67%

Rating Summary:
    28 Buy, 8 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 27 | New: 7
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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.

Mahaney highlighted"

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) Appears to Be Gaining Traction – As a research site, was selected by 24% of U.S. respondents (up from 16% in 2015). And as a booking site, 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 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.

For an analyst ratings summary and ratings history on The Priceline Group click here. For more ratings news on The Priceline Group click here.

Shares of The Priceline Group closed at $1490.44 yesterday.

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