According to a Reuters consensus, of the 31 analysts tracking Priceline Group (PCLN), 23.3%, or seven analysts, have a “strong buy” rating for the stock, and 56.7%, or 17 analysts, have a “buy” recommendation. About 20.0%, or six analysts, have a “hold” rating for the stock, and none of them have a “sell” rating.
There have been many changes in analyst ratings and target prices ahead of Priceline’s second-quarter earnings. Credit Suisse has raised its target price from $2,020 to $2,150 and maintained its “outperform” rating. MoffettNathanson has raised its target price from $1,825 to $1,900. Morgan Stanley raised its target price from $1,950 to $2,100, which led to a 2.1% rise for the stock.
Jefferies raised its target price from $2,000 to $2,250 and maintained its “buy” rating. UBS has raised its target price from $1,870 to $2,100. JP Morgan has raised its target price from $1,940 to $2,125.
Barclays has raised its target price from $1,900 to $2,050 and maintained its “overweight” rating. Raymond James has raised its target price from $1,915 to $2,070. Deutsche Bank has also raised its target price from $1,725 to $2,000.
All the analyst upgrades have led to Priceline’s consensus 12-month target price rising to $2,078, which is much higher than the $1,938.30 target price after 1Q17. The current target indicates a 2.8% return potential as of August 2, 2017, with a closing price of $2,021.40. The highest target price for Priceline stock is currently $2,250, and the lowest price target is $1,850.
To avoid the risk of investing in a particular stock, you can get exposure to Priceline by investing in the SPDR MFS Systematic Core Equity ETF (SYE), which invests 3.6% of its holdings in the stock. However, it has no exposure to other online travel stocks, including Expedia (EXPE), TripAdvisor (TRIP), and Ctrip.com International (CTRP).