Deutsche Bank Upgrades priceline.com (PCLN) to Buy

May 20, 2013 7:12 AM EDT Send to a Friend
Get Alerts PCLN Hot Sheet
Price: $1,206.21 +5.20%

Rating Summary:
    27 Buy, 3 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 29 | Down: 45 | New: 4
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Deutsche Bank upgraded priceline.com (NASDAQ: PCLN) from Hold to Buy with a price target of $900.00 (from $715.00), saying margins should stabilize and the multiple could expand back to 20x.

Analyst Ross Sandler comments, "PCLN is the clear global secular winner in the OTA space, owing to its unique supply footprint, industry-high growth rates and margins, and over-exposure to our preferred international hotel bookings. We believe it should start to see margins stabilize in 2H13 as it comps the negative ROI period that began in mid-2012. Earnings should grow at a 20% CAGR over the next 3 years, which should allow PCLN's multiple to expand back to 20x EPS, the upper end of its historic range. Our prior concerns around competition and margin compression are well understood by consensus, hence if trajectory improves, we see upside to consensus."

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 $813.66 yesterday.


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