BofA raised the earnings estimates from $38.40 EPS in 2013 and $44.68 in 2014 up to a higher earnings projection: $38.67 in 2013 and $45.47 in 2014. The upgrade was based upon excitement for the Kayak deal and the following:
- 1) We see more near-term upside potential to 2013 estimates than Expedia Inc. (NASDAQ: EXPE)
- 2) our updated international market segment analysis suggests still-strong growth over next three years, even with Europe decelerating and
- 3) a strong play on BofA Merrill Lynch’s expectation for a modest second half Europe recovery.
The research report also noted “somewhat stable hotel occupancy trends through November” and it said that the $/Euro has increased. BofA even noted that the Booking.com hotels are up 7% quarter over quarter versus its own 6% estimate.
If BofA is right, then Priceline could be headed back to its 52-week highs all over again. The $770 price target compares to a 52-week range of $469.28 to $774.96. Analysts in the Thomson Reuters system have a consensus price target of about $750 and the highest registered analyst price target is $838 on the stock. So BofA is calling for Priceline to challenge its 2012 highs. That is a tad more bullish than the consensus group but not by much.
Priceline shares are trading up 2.6% at $655 today. With a market cap of $32.6 billion, Priceline remains more valuable than most of the airlines combined.
JON C. OGG
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
