The Priceline Group (PCLN) PT Lifted to $1850 at RBC Following 'Beat and Raise' Q3

November 8, 2016 6:26 AM EST
Get Alerts PCLN Hot Sheet
Price: $1,473.00 -0.45%

Rating Summary:
    28 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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RBC Capital analyst Mark Mahaney reiterated an Outperform rating and raised his price target on The Priceline Group (NASDAQ: PCLN) to $1,850.00 (from $1,750.00) following Beat & Raise Q3 results.

What investors need to know, according to Mahaney:

1) Organic Growth Trends Robust (in context) – 26% Y/Y Bookings (ex-FX), 29% Y/Y Hotel Room Night, and 23% Y/Y Gross Profit (ex-FX) – the context is that comps were easier this quarter and there weren’t dramatically negative Macro events…and nobody bothered with the Olympics?...

2) Less Worse Margin Trends – 51.5% EBITDA Margin was down only 70 bps Y/Y, with Performance Advertising not showing as much deleverage as feared.

3) Sizeable Share Repos & FCF Generation – Repo’d $199MM in Q3 and generated $1.5B in FCF.

4) Materially Outpaced EXPE In Room Night Growth – Outgrew EXPE 29% vs. 11%.

5) Took $941MM Non-Cash Charge Re: OpenTable – Scaling back International plans…a negative, tho not a major development; &

6) CEO Search Still Going On…

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 $1480.33 yesterday.



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RBC Capital, Mark Mahaney

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