Priceline's (PCLN) Europe potential means it deserves a premium multiple vs. other internet...


Priceline's (PCLN) Europe potential means it deserves a premium multiple vs. other internet companies, Barclays says as it raises its target price on the shares to $800 from $725. PCLN performs "extremely well in Europe" and has a "very robust growth runway ahead" there, the firm says, plus any European short-term stability would give shares "a strong chance to outperform."

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Comments (4)
  • russellb73
    , contributor
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    I thought Europe was in a recession? Maybe Barclays was assuming when Europe recovers (and Europeans will celebrate in mass by traveling, booking on priceline, with all the new wealth they will have suddenly found)? To me this stock seems really expensive. I would appreciate any thoughtful comments about why it is not expensive.

     

    Disclosure currently own PCLN puts as a hedge to mess in Europe
    30 Mar 2012, 04:54 PM Reply Like
  • BriansGirl
    , contributor
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    I own puts as well on PCLN. I went out to Oct 2012 to give this some time to come back to reality.

     

    I believe this stock is being pushed up by the machines. The movement has nothing to do with fundamentals really imo. The only point that it will stop is when the common stock is not so heavily shorted, and the only buyers left will be the machines. It will be at that time, when the stock will fall and the machines will begin to screw each other.

     

    The talking heads all say that their growth rate justifies the p/e. Trailing p/e is over 35. I, like you, have a hard time understanding whose willing to hold the shares at these levels. The CEO has sold 30% of his stock, the CFO has sold. The SEC is questioning the company about it's activites in Syria, Iran and Cuba. It is NEVER good when the SEC comes sniffing around a company. I hope they check the accounting department while they are at it.

     

    I can't offer you any comments about why it's not expensive other than the talking heads seem to think it can continue growing at over 30% for over 5 years.
    3 Apr 2012, 09:39 PM Reply Like
  • Quarterback Options
    , contributor
    Comment (1) | Send Message
     
    The price target being raised yet again (this time to $800 on the road toward $1,000) is likely due to considering the excellent earnings performance--reported during this past quarter--and the fundamentals that keep its market-share developing.
    I think approaching PCLN from a technical perspective alone is similar to fooling yourself out of profits. Fundamentally, Priceline has been recognized as the best-of-breed in this space--per Jim Cramer, etc. With noticeable world events all occurring this year, the need for reservations is in demand. Just one example of an international event is the London Olympics, which is a platform of performance increase in itself for Priceline!
    I see no reason why this stock hadn't just rebounded on open-shares availability, due to the insider trading of past weeks...well, other than for the fear created by reading all the technicals' anticipations for PCLN's demise! Why not enjoy the profits at least in the short-term by timing the momentums, while Priceline gears-up for its core cyclical months? Why worry about the top heaviness now, when you can be concerned with all the technicals as it gets closer to earnings season (on May 3rd for PCLN)?

     

    Disclosure: Infatuated with timing the opportunities in PCLN call options, while others corner themselves in technical fears.
    4 Apr 2012, 05:31 AM Reply Like
  • grgazoo25
    , contributor
    Comment (1) | Send Message
     
    I agree with Q-Back Options. Just sit back, shut up, and enjoy the ride. Its a gift from Zeus. Don't buy shares if your so worried. Let the machines run it to all time highs then get out. I am not gonna fight the trend. Buy the freakin dips!
    7 Apr 2012, 01:59 PM Reply Like
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