Analysts Rushing To Raise Priceline Targets… Too Late? (PCLN)

Priceline.com Inc. (NASDAQ: PCLN) is hitting yet another year high after beating earnings, raising estimates, and calling for continued strength and growth in its domestic and international bookings.  While shares are up over 7% at $634.00, we could not help but notice some key price changes from Wall Street analysts today.  Some of these seem hard to fathom after the 40% gain we have seen in recent weeks, but here are some of the price targets raised from analysts:

• Benchmark raised its target to $692 from $638;
• Citibank raised its target to $850 from $700;
• Credit Suisse raised its target to $790 from $710;
• Stifel Nicolaus raised its target to $750 from $555.

Valuation is causing some concern at one research firm.  S&P Capital IQ downgraded Priceline to Hold from Buy based on excessive share gains and on its valuation versus prospects for more growth.  The prior 52-week range was $411.26 to $597.00 and this stock is almost at its all-time high from the dot-com bubble. Priceline now has a market cap of $31.6 billion.