Goldman Sachs Downgrades The Priceline Group (PCLN) to Neutral

(Updated - January 27, 2016 8:39 AM EST)

Goldman Sachs downgraded The Priceline Group (NASDAQ: PCLN) from Buy to Neutral with a price target of $1,200.00 (from $1,500.00). Analyst Heath P. Terry pointed out a stronger dollar, competition, and slowing growth.

"While we continue to believe Priceline is the best positioned given its exposure to faster growing Asia, lighter mix of large hotel chains and relatively attractive multiple, the stronger dollar and competitive environment will continue to limit outperformance, in our opinion. Therefore, we take our rating on shares of PCLN to Neutral from Buy and lower our 12-month price target to $1,200 from $1,500," said Terry.

The analyst added, "The macro environment has proven largely supportive of travel over the last five years as ADR and occupancy figures have continued to climb through previous records. Unlike previous peaks, below average supply growth is leading to a crowding out of more price sensitive leisure travelers, in our view, aiding in the growth of alternative accommodations like Airbnb, encouraging competition from traditional sources of traffic, and pressuring OTA commission rates and operating relationships."

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 $1111.54 yesterday.

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