Priceline Shares Worth $1,480: Cantor
Shares of Priceline Group, Inc. (NASDAQ: PCLN) are up 14.33 percent year-to-date, hitting a high of $12.51.80 on August 6.
Naved Khan of Cantor Fitzgerald has reiterated a Buy rating and price target of $1480 on the company.
Checks suggest that the company’s bookings are tracking at or above the higher end of the guidance and the estimates during 3Q15.
According to the Cantor Fitzgerald report, intra-quarter checks suggest that “hotel room rates across both Europe and the US have continued to improve year on year through September,” while the global Search traffic trends have been positive through September.
Analyst Naved Khan also mentioned that Priceline had been witnessing solid pace of new property additions. Cantor Fitzgerald’s tracking of hotel room rates in Europe revealed that rates increase 14 percent year on year in Q3, on a euro-denominated basis, suggesting robust demand for European destinations.
“That said, we expect the Y/Y decline in the euro vs. the USD to be a headwind for reported results,” Khan added.
In the US, hotel occupancy and the average daily rate increased 1.3 percent and 4.5 percent year-on-year, respectively, during the quarter.
“Worldwide Search interest for Booking.com tracking ahead of expectations,” the report went on to say, while adding that year-on-year growth in Search query interest on Booking.com had declined 200bps quarter on quarter in Q3.
“Given Search's importance in PCLN's marketing channel mix, coupled with a strong secular growth trend in mobile and the ADR trend,” Khan believes that Priceline is tracking at or above the high-end of its guidance for 23 percent year-on-year growth in international bookings for the quarter.
Latest Ratings for PCLN
Sep 2015 | Redburn | Initiates Coverage on | Buy | |
Aug 2015 | Janney Capital | |||
Jun 2015 | Deutsche Bank | Downgrades | Buy | Hold |
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