In a research report released today, Oppenheimer analyst Manish Hemrajani reiterated an Outperform rating on Priceline.com (NASDAQ:PCLN), but slightly reduced his price target to $1300 (from $1350), which represents a potential upside of 27% from where the stock is currently trading.
Hemrajani noted, “Among our OTA coverage, PCLN has the highest exposure to the euro. At current euro/USD levels we see a negative impact of 4.6% on 2015 GBs. On a positive note Air traffic trends remain healthy in Europe albeit with some shift toward LCCs (low-cost carriers). Dec-qtr also saw healthy property additions on booking.com and we don’t see any risk to December quarter estimates but we probably will see muted guidance for the March quarter. Street numbers remain high for 1Q15/FY15.”
The analyst continued, “We are materially lowering our 2015 estimates for Priceline amid FX headwinds. Recent weakness in EUR/USD, represents a headwind as it reduces euro-denominated bookings/revenue/income in USD terms. With the euro having depreciated 2.4% through December quarter and 5.6% since September-quarter results, FX has an adverse impact on our estimates.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Manish Hemrajani has a total average return of 6.7% and a 59.1% success rate. Hemrajani has a -10.9% average return when recommending PCLN, and is ranked #1161 out of 3425 analysts.