Priceline.com Receives a Buy from Morgan Stanley

By George MacDonald

According to The Fly, in a report released yesterday, Brian Nowak from Morgan Stanley reiterated a Buy rating on Priceline.com (NASDAQ: PCLN), with a price target of $1600. The company’s shares closed yesterday at $1414.22, close to its 52-week high of $1476.52.

Nowak said, “We see bookings acceleration and positive EPS revisions ahead…with PCLN now set to grow EPS at a 20% 3-year CAGR.”

According to TipRanks.com, Nowak is a 5-star analyst with an average return of 7.6% and a 69.1% success rate. Nowak covers the Technology sector, focusing on stocks such as IAC/InterActiveCorp, TripAdvisor Inc., and Alibaba Group.

Currently, the analyst consensus on Priceline.com is Strong Buy and the average price target is $1602.92, representing a 13.3% upside.

In a report issued on July 21, Piper Jaffray also reiterated a Buy rating on the stock.

Based on Priceline.com`s latest earnings report from December 31, the company posted quarterly revenue of $2B and quarterly net profit of $504.3M. In comparison, last year the company earned revenue of $2.28B and had a net profit of $517M.

Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is neutral on the stock. Most recently, in May 2016, Jeffery Boyd, a a Director at PCLN sold 166 shares for a total of $209,416.

The Priceline Group, Inc. is an online travel company, which provides travel and related services. It offers accommodation reservations including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties. The company provides services through Booking.com, priceline.com, agoda.com, KAYAK, rentalcars.com and OpenTable brands. Its priceline.com brand also offers consumers reservations for rental cars, airline tickets, vacation packages and cruises. The company also allows consumers to easily compare airline ticket, hotel reservation and rental car reservation information from hundreds of travel websites at once through KAYAK. The Priceline Group was founded by Jay Scott Walker on July 18, 1997 and is headquartered in Norwalk, CT.