In a report published Monday, Morgan Stanley analyst Scott Devitt upgraded the rating on Priceline.com PCLN to Overweight, and raised the price target to $1,010.00.
In the report, Morgan Stanley noted, “We believe Priceline can outperform consensus estimates and shares can re-rate from 17x 2014 EPS to 20-21x as it continues to post strong organic international bookings growth and fears of margin degradation dissipate. Booking.com offers a strong value proposition to hotels (lowest commission rate, flexibility and access to the largest European traveler base). Offline-to-online shift in hotel bookings in Europe, APAC & Latin America offsets cyclical risks. Strong cash flow and low capital intensity. Solid management team with a strong track record.”
Priceline.com closed on Friday at $855.16.
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