Nomura Securities Adjusts Estimates and PT on priceline.com (PCLN); Q2 Review

August 2, 2012 8:15 AM EDT Send to a Friend
Get Alerts PCLN Hot Sheet
Price: $1,208.36 -0.32%

Rating Summary:
    27 Buy, 1 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 18 | Down: 9 | New: 22
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Nomura Securities maintains a 'Neutral' on priceline.com (NASDAQ: PCLN) price target of $740.00 (from $725.00).

Analyst, Brian Nowak, said, "PCLN lagged the market by 400bp in 2Q:12 due to, in our view, concerns of a European slow-down. As such, in our view, revisions (and earnings beats) will continue to be the biggest Priceline drivers. We think there is little controversy about PCLN’s ability to continue to dominate and take share in Europe. Europe may be stable, but by our math “stability” isn’t enough to drive outsized beats. That is, we are modeling 4% total European hotel unit demand growth in 2012 and expect PCLN to gain ~280bp of incremental share of total European demand, roughly consistent with the record share gains in 2011 and 2X the long-term average annual share gains. Priceline remains an impressive beat and raise story, and while we now have 15% upside to our current price target, we remain on the sidelines until we can find a more material source of incremental earnings upside."

F12E EPS from $32.92 to $32.90; F13E EPS from $41.16 to $40.98.

For an analyst ratings summary and ratings history on priceline.com click here. For more ratings news on priceline.com click here.

Shares of priceline.com closed at $642.98 yesterday.




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Analyst Comments, Analyst EPS View, Analyst PT Change

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Nomura, Earnings

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