Evercore ISI analyst Ken Sena lowered his price target on The Priceline Group (NASDAQ: PCLN) to $1,360.00 (from $1,400.00) following Q3 results which showed lighter booking growth.

Sena commented, "With 21M rooms now instantly bookable (14.4M hotels, 1.8M vacation rentals, and 4.8M multi-room unique properties), PCLN certainly offers scale and booking ease across most all accommodation classes, and of the 21mm ‘bookabale’ rooms, management equates penetration to a single-digit percentage of global supply, thus suggesting plenty of runway. Nevertheless, the quarter and the guidance both seemed to suggest notable top-line growth deceleration, particularly in the U.S. where 4Q U.S. bookings are expected to decline by 5% - 10% vs the prior year (compared to -2.5% in 3Q). It will also be the last quarter where the company breaks out its Booking.com (International) vs. Priceline.com (domestic) given that Priceline.com is now less than 10% of bookings."

Given the softer 3Q results and the weaker than expected guidance, they are lowering 4Q15 gross profit and Adj. EBITDA each by 4% to $1.88B (12% y/y) and $797M (12% y/y and 42% of revenue), respectively, largely driven by lower room night / bookings growth. Furthermore, as they flow through lower top-line growth expectations into 2016, they are also lowering 2016 bookings 2% to $64.8B (17% y/y), gross profit 1% to $10.1B (17% y/y) and Adj. EBITDA 4% to $4.41B (18% y/y). Additionally, the firm's longer-term forecast now contemplates a modestly lower bookings CAGR of 14% vs. ~15% previously.

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Shares of The Priceline Group closed at $1449.90 yesterday.