Priceline.com (PCLN) is one of the leading online travel companies in the world. Priceline's first quarter earnings missed the Zacks Consensus but management expects strong double-digit bookings growth in the next quarter, with international growing much faster than domestic.
The secular growth trend in the online travel space, Priceline's own business momentum, international growth opportunities, good execution, prudent marketing strategy and strong financial position are likely to drive upside to the shares. While occupancy tax-related litigation remains an overhang, it is likely to have the same impact on all peer companies.
With demand strengthening considerably following the recession, we remain optimistic. We therefore have an Outperform rating on PCLN shares.
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