Priceline Group Inc (NASDAQ:PCLN), the world leader in online travel and related services, and Hotel Urbano, one of Brazil’s largest and fastest growing online travel companies, announced that the two companies have entered into a strategic partnership consisting of a commercial agreement and a minority investment by The Priceline Group. As part of the partnership, The Priceline Group will provide access to accommodations outside of Latin America from its global network of 680,000+ accommodations partners toHotel Urbano. In addition, The Priceline Group has made a $60 million investment – equivalent to approximately R$185 million on this date – in exchange for a minority interest into Hotel Urbano.
The partnership will give consumers in Brazil and Latin America access to even more great accommodations around the world through The Priceline Group’s network. Hotel Urbano will use Booking.com to power its non-LATAM retail hotels product on an exclusive basis, and The Priceline Groupwill also be the preferred provider for Hotel Urbano’s global packages.
“Brazil is a dynamic, fast growing market and both of us are growing very rapidly within this region,” said Darren Huston, President and CEO of The Priceline Group. “We are excited to partner with Hotel Urbano to help globalize their offering and let their customers experience the best of what both of us have to offer.”
“The Priceline Group has truly global scale and partners with the world’s best and most diverse accommodations worldwide – from hotels to villas and beyond,” said Joao Ricardo and Jose Eduardo Mendes, co-founders of Hotel Urbano. “We are not only committed to bringing our customers access to the best experience out there, we are committed to expanding our presence in Latin America, and look forward to having this unique partnership with The Priceline Group as our first major step in this regard.”
The strategic partnership will begin immediately and roll out fully over the coming quarters. Additional terms of the deal have not been disclosed. (Original Source)
Shares of Priceline.com closed last Thursday at $1143.07. PCLN has a 1-year high of $1329.90 and a 1-year low of $990.69. The stock’s 50-day moving average is $1174.27 and its 200-day moving average is $1155.25.
On the ratings front, Priceline has been the subject of a number of recent research reports. In a report issued on June 30, Cantor Fitzgerald analyst Naved Khan maintained a Buy rating on PCLN, with a price target of $1360, which implies an upside of 19.0% from current levels. Separately, on June 22, Deutsche Bank’s Lloyd Walmsley downgraded the stock to Hold and has a price target of $1325.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Naved Khan and Lloyd Walmsley have a total average return of 22.6% and 14.6% respectively. Khan has a success rate of 70.2% and is ranked #214 out of 3689 analysts, while Walmsley has a success rate of 59.2% and is ranked #323.
In total, 2 research analysts have assigned a Hold rating and 6 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $1350.83 which is 18.2% above where the stock closed last Thursday.
Priceline Group Inc is a provider of online travel and travel related reservation and search services. The Company offer consumers accommodation reservations through its Booking.com, priceline.com and agoda.com brands.