Nomura Securities Upgrades (PCLN) to Buy; Growing Global

September 7, 2012 7:22 AM EDT
Get Alerts PCLN Hot Sheet
Price: $1,282.50 +2.69%

Rating Summary:
    25 Buy, 8 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 15 | New: 31
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Nomura Securities upgraded (NASDAQ: PCLN) from Neutral to Buy. PT raised from $700 to $740.

Analyst, Brian Nowak, said, "Any PCLN debate begins with Europe, and in this case, we are taking a more conservative stance following PCLN’s recent warning of a weakening European environment. We are lowering our European macro room night forecast in 2012 (to 0% from 4%) and in 2013 (to -4%, the slowest seen since 2008) and our PCLN numbers accordingly. PCLN’s recent stock performance (its multiple compressing by ~7% since 2Q:12 EPS) creates a unique entry point, as we see PCLN reaching our $740 PT even if its forward PE multiple ex-cash compresses by 13%. PCLN is becoming more global, as 65% of forward room nights will come from outside of Europe (vs only 42% in the past) and the combination of its still-dominant European business and growing US and APAC businesses should enable it to print more upside surprises. We are 2% above 2012 Street EPS and 3% ahead in 2013."

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

Shares of closed at $604.00 yesterday.

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