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Tuesday, November 10, 2009

Citigroup ups Priceline target to $240


I'll take it. Pump it some more so I can flip it!

Even the indexer's are making money. They added PCLN at 168.

This market is so forgiving, you can't even game that bunch!

4 comments :

Palmoni said...

Goldman's at 225

What's changed
Priceline posted stronger than expected 3Q2009 results, especially internationally. Gross bookings, revenue,
and EPS of $2,723 mn (+33% yoy), $731 mn (+30% yoy), and $3.45 (+44% yoy), beat our above-consensus
$2,568 mn, $696 mn, and $2.90 estimates. Unit growth accelerated (to 47% yoy from 36% in 2Q2009) due to
airline tickets sold (+30% yoy vs. 14%) and hotel room nights (+56% yoy vs. 44%, twice as fast as Expedia).
Margins generally exceeded our forecasts. 4Q gross bookings and EPS guidance at the midpoints are
$2,000 mn (+35% yoy) and $1.57 (+22% yoy), above consensus though slightly below our estimates. We
increase 2009/2010/2011E EPS to $8.30/$10.01/$11.64 from $7.72/$9.18/ $10.59 due to 3Q outperformance
and a better 2009 outlook.
Implications
(1) International hotel growth despite weak consumption in Europe highlights that online bookings penetration
rates are still much lower in Europe than in the US, and that Priceline remains the Europe leader.
(2) Air volume growth matching or exceeding rates at competitors suggests that competitor fee cuts take
share primarily from supplier sites, rather than from Priceline.
(3) Management cautioned that comps become tougher from November, as lower prices drove volume; we believe this is intended to discourage investors from assuming similarly large beat-and-raises in future
quarters.
Valuation
We raise our 6-month DCF/PEG-based price target to $225 from $210.

Palmoni said...

up 30--I'm gone..thanks shortsellers for all the manna!!!!!!

you've been amazoned again!!!!

Anonymous said...

great call...couldn't afford it but $30 is crazy!

palmoni said...

Options were the play! The Nov cheapies and Jans out of the money $ banked major coin!!!!!!!!!