How Analysts View Priceline in 2017 and Beyond
The consensus 12-month target for PCLN’s stock price is $1,851.80, which indicates a 7.4% return potential from its February 28, 2017, closing price of $1,741.00.
Priceline (PCLN) currently trades at a forward PE (price-to-earnings) multiple of 25.2x.
The total debt on Priceline’s (PCLN) balance sheet has increased from $1.9 billion in 2013 to $3.9 billion in 2014, $6.2 million at the end of 2015, and $7.1 billion in 2016.
Priceline (PCLN) invested $4 billion in marketing for 2016, higher than its $3 billion marketing expenditures in 2015.
During 4Q16, Priceline’s Global Accommodation business booked 129.7 million room nights, an increase of 31% year-over-year (or YoY) from 4Q15.
Priceline’s (PCLN) fiscal 2016 performance was subdued by the dollar’s appreciation. Because Priceline has a widespread international presence, it’s prone to currency fluctuation risks.
For 1Q17, Priceline (PCLN) expects its gross profits to grow 9.5%–14.5%. Its adjusted EBITDA is expected to rise 7% to $550 million–$580 million.
Priceline (PCLN) reported its 4Q16 results on February 27, 2017. Priceline reported earnings per share of $13.50, a 34.7% increase YoY, which beat analyst estimates of $12.85 per share.
After the unconventional acquisition of Opentable, Momondo was a logical addition as it adds to the travel database of Kayak’s existing portfolio.
Year-to-date through February 23, 2017, Priceline (PCLN) stock has risen 11.7%, outperforming rivals Expedia and TripAdvisor (TRIP).
With its metasearch brands—Kayak, Momondo, and Skyscanner (through Ctrip)—Priceline seems to have a larger share of the pie, leaving little on the table when Expedia goes shopping.
Momondo is estimated to have generated $125 million in revenues for the last 12 months, which means a price-to-sales multiple of 4.4x.
Earlier this month, the Priceline Group (PCLN) signed a deal to acquire Momondo Group. Priceline will acquire all outstanding shares of Momondo for $550 million in an all-cash deal.
Priceline and its competitor Expedia have been constantly trying to outpace one another, aggressively acquiring smaller players in bids to achieve growth.
Currently, Priceline (PCLN) is trading at a forward PE (price-to-earnings multiple) of 24.3x, higher than its average valuation of 20x since November 2008.
Gross bookings is the metric used to measure the total value of all travel services purchased by customers. On a constant dollar basis, gross bookings have shown strong growth.
Analysts expect Priceline’s (PCLN) EBITDA (earnings before interest, tax, depreciation, and amortization) to rise only 3.7% to $818.5 million in 4Q16.
According to a Reuters consensus, of the 34 analysts tracking Priceline (PCLN), 24% have “strong buy” recommendations on the stock, and 59% have “buy” recommendations.
For 4Q16, analysts expect Priceline’s (PCLN) revenue to rise 16.2%, less than the 18.9% growth the company saw in 3Q16.
Priceline (PCLN), the world’s largest online travel agency, is expected to release its 4Q16 results after the market closes on February 27, 2017.