Oppenheimer Slightly Cuts Priceline Price Target On Cautious Outlook


In research note issued yesterday, Oppenheimer analyst Manish Hemrajani reiterated an Outperform rating on Priceline.com Inc (NASDAQ:PCLN) and reduced his price target to $1350 (from $1400), following the company’s third-quarter results.

Hemrajani wrote, “As previewed last week, Priceline reported a solid Sept-quarter, with revenue matching our above consensus estimates and EPS well above all expectations. However, management offered cautious and below consensus outlook, with 4Q14 revenue growth guidance of 11-18% and gross booking growth of 8-15% (13-20% in CC), impacted by weakness in the euro and mixed macro conditions in Europe. We note that management has a history of guiding conservatively. Despite weak macro, FX headwinds, and difficult comps, we remain positive on PCLN’s execution prowess, continued share gains, rising direct traffic, partnerships with Ctrip and Alibaba in China in a strong travel macro backdrop.”

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 4.7% and a 47.4% success rate. Hemrajani has a -6.0% average return when recommending PCLN, and is ranked #1412 out of 3363 analysts.

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