The Priceline Group (PCLN) PT Lifted to $1850 at RBC Following 'Beat and Raise' Q3
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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…
Shares of The Priceline Group closed at $1480.33 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesRBC Capital, Mark Mahaney
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