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What Analysts Recommend for Priceline ahead of Its 1Q17 Results

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Analyst views

According to a Reuters consensus, out of the 31 analysts tracking Priceline (PCLN), 22.6% (seven analysts) have a “strong buy” recommendation on the stock, and 58.1% (18 analysts) have a “buy” recommendation on the stock. 

This is slightly lower than the 82.9% of the analysts that had “strong buy” and “buy” ratings after its 4Q16 results. Six analysts (19.4%) have a “hold” rating and none of the analysts have a “sell” rating.

Target price

Priceline’s (PCLN) consensus 12-month target price is $1,919.14, which is much higher than the $1,858.80 target price that analysts offered after 4Q16. The target price is also higher than the $1,740.66 target after 3Q16, and it’s also higher than the $1,592.70 target that analysts gave after 2Q16. 

Priceline’s current target indicates a 2.6% return potential on its May 2, 2017, closing price of $1,873.10. The highest target price for Priceline stock is currently $2,100.00, and the lowest target price is $1,725.00.

Many analysts have also raised their target prices for the stock. Cowen and Co. raised its target price to $2,000.00 from $1,850.00, and BofA Merrill Lynch raised its target price to $1,920.00 from $1,800.00. Deutsche Bank raised its target price to $1,725.00 from $1,500.00, and Benchmark raised its target price to $1,900.00 from $1,800.00.

Raymond James raised its target price to $1,915.00 from $1,700.00, and Stifel raised its target price to $2,100.00 from $1,900.00. Credit Suisse raised its target price to $1,935.00 from $1,900.00. Citigroup raised its target price to $1,880.00 from $1,800.00. UBS raised its target price to $1,870.00 from $1,750.00, and Jefferies raised its target price to $2,000.00 from $1,800.00. 

J.P. Morgan raised its target price to $1,940.00 from $1,750.00, and Barclays raised its target price to $1,900.00 from $1,750.00. RBC raised its target price to $2,000.00 from $1,850.00, and Morgan Stanley raised its target price to $1,800.00 from $1,750.00.

Investors can gain exposure to Priceline (PCLN) stock by investing in the PowerShares Dynamic Leisure and Entertainment ETF (PEJ), where PCLN has the highest weight of ~5.7%. However, this ETF has no exposure to other online travel stocks, including Expedia (EXPE), TripAdvisor (TRIP), and Ctrip International (CTRP).

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