Priceline Group Inc
Analyst Kurnos maintains a Buy rating on the company, while raising the price target from $1,600 to $1,800.
Strong Results, Healthy Guidance
Priceline delivered a 5 percent beat on room-night [RN] growth and an EBITA upside of $90 million. The company announced healthy Q4 guidance. Although management indicated a $940 million impairment charge related to
“We continue to view Priceline as a leading innovator in an evolving, healthy growth industry, with sustainable mid-teens or better revenue and cash flow growth,” Kurnos commented.
Priceline reported an acceleration in room-night growth to 29 percent, from 24.5 percent in the prior quarter. The growth came ahead of the consensus estimate of 24 percent, “likely driven by a combination of domestic traction at Booking.com and accelerating growth at Agoda,” the analyst noted.
Although growth would likely moderate over the next five quarters, “we are incrementally more optimistic that marketing ROI pressure will be less than anticipated, and that bookings/revenue momentum can continue at a mid-teens pace regardless,” Kurnos added.
At last check, Priceline was up 7.07 percent at $1,585.01.
|Nov 2016||Ascendiant Capital||Maintains||Buy|
|Nov 2016||Goldman Sachs||Maintains||Neutral|
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