Nomura Securities Maintains a 'Reduce' on priceline.com (PCLN); 3Q Beat, 4Q Guide Down

Nomura Securities maintains a 'Reduce' on priceline.com (NASDAQ: PCLN), but raises price target from $420 to $460.

Nomura analyst, Brian Nowak, said, "PCLN reported non-GAAP EPS of $9.95, beating us by 8% and consensus by 7%. The beat vs our numbers was driven by stronger-than-expected international gross profit. 4Q 11 guidance was a disappointment as the company expects gross profit growth from 42-47% (vs our previous estimate/consensus at 51%/ 47%) and non-GAAP EPS of $4.90 to $5.00, vs our previous estimate/consensus of $5.18/$5.11. In our view, this speaks to the increasing difficulty PCLN will have maintaining its gross profit growth rate heading into 2012. We maintain our Reduce rating and raise our price target to $460 to reflect our slightly higher 2012 estimates and the increase in the market multiple."

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 $509.00 yesterday.

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