RBC's Key's to Priceline Group's (PCLN) Quarter
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
RBC Capital Analyst, Mark Mahaney, reiterated his Outperform rating on The Priceline Group (NASDAQ: PCLN) and reiterated his price target of $1,600. Keys to the quarter include:
1) Organic Growth Trends Robust – 21% Y/Y Bookings (ex-FX), 24% Y/Y Hotel Room Night, and 18% Y/Y Gross Profit (ex-FX)
2) Q3 Outlook Implies Acceleration in terms of Room Night Growth, Gross Profit, and Gross Bookings…we still see PCLN on track to deliver Room Night growth in ’16 at or above ’15
3) Less Worse Margin Trends 34% Op. Margin was down 310 bps Y/Y, and Q3 guide suggests potential for less deleverage…Performance Advertising ROI has been stable for four quarters, tho no signs of leverage.
4) Sizeable Share Repurchases & FCF Generation– Repurchased $299MM in Q2 and generated $1.1B in FCF.
5) Materially Outpaced EXPE In Room Night Growth and Bookings– Outgrew EXPE 24% vs. 12%.
6) CEO Search Still On– We estimate former CEO Jeff Boyd remains Interim CEO until year-end.
Shares of The Priceline Group closed at $1359.99 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- MKM Partners Raises Price Target on Broadcom Ltd. (AVGO) to $207 Following 4Q Beat
- Pivotal Research Upgrades Flowers Foods (FLO) to Hold
- KLR Group Cuts Price Target on Bill Barrett (BBG) to $9; Reiterates Buy
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesRBC Capital, Mark Mahaney
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!