Benchmark Reiterates Buy on Priceline.com

Benchmark is out with its report today on Priceline.com PCLN, reiterating Buy. In a note to clients, Benchmark writes, "We reiterate our Buy rating on Priceline as hotel demand metrics rallied in May, especially overseas, after April experienced a marginal residual impact from the natural disaster in Japan in early March. Priceline's leading position in the European and Asia/Pacific hotel markets could allow bookings to rise by 56% y/y in 2011. Rising ADRs may help bolster revenue and gross profit margins, leading to revenue growth of 40% and EBITDA growth of 49% y/y. Our 2011 EPS estimate is $20.50, up 52% y/y. Priceline may also generate $21.00 in free cash flow." Benchmark maintains a $676 PT on PCLN. At the time of posting, shares of PCLN were trading pre-market at $507.27, up 0.67% from Wednesday's close.