RBC Capital Keeps Priceline (PCLN) at Outperform Following Solid Q2 Results, Outlook

RBC Capital affirms Priceline (Nasdaq: PCLN) at Outperform with a price target of $1,500 following Q2 results and guidance issued earlier Monday.

Analyst Mark Mahaney noted the following positives and negatives from the quarter:

Positives:

1. The Impressive & Consistent Fundamentals…;

2. Solid Unit Metrics – 29% Y/Y Room Night growth (thougha decl from 38% in ’13), 59% Y/Y Booking.com Properties growth to 525K; and

3. Plausible Share Gains In Every Market

1. Deceleration In International Gross Bookings And Room Night Growth – explained by lower than expected FX, Name-Your-Own-Price weakness and int’l unrest (Thailand, Ukraine);

2. Marketing deleverage – continues, but believe this is a shorter-term issue and not permanent; and

   Rental Car Days Decl – to 14% Y/Y growth in Q2 from 25% Y/Y in Q1.

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

The Priceline Group closed at $1281.56 yesterday.

You May Also Be Interested In

• Dollarama Inc. (DOL:CN) (DLMAF) PT Raised to Cdn$231 at Bernstein SocGen
• Oxford Industries (OXM) PT Lowered to $40 at UBS Amid Top-line Weakness
• RLJ Lodging Trust (RLJ) PT Raised to $10 at Truist Securities