Weak Euro And Volcanic Disruptions Affect PCLN’s Q2 Guidance

Analysts at Benchmark reiterate their "buy" rating on Priceline.com Inc PCLN, while reducing their estimates for the company. The target price for PCLN is set to $287. PCLN has reported in-line Q1 results driven by 53% y/y jump in gross bookings. The company reported an increase in revenues, which was well below the consensus due to higher air ticket prices and weakness in opaque rental car days. According to the analysts, “Priceline’s 2Q10 guidance appeared slightly disappointing, with net revenue growth forecast in a range of 18-23% y/y compared with consensus at 26% and proforma EPS guided in a range of $2.50-$2.70 versus consensus at $2.83. The guidance reflects the impact of the volcanic disruption and a weakening Euro currency.” Benchmark has lowered its EPS estimates for FY2011 from $14 to $13.85. More Analyst Ratings here