By Carly Forster
When traveling to new places, one absolute must is to try new foods.
Priceline in the News
Priceline Group Inc (NASDAQ:PCLN) is an American company and commercial website that offers discount rates for travel-related things like hotel bookings and airline tickets. The travel company announced on Friday, June 13 that they are purchasing restaurant reservation service OpenTable for $2.6 billion. Priceline CEO Darren Huston commented, “OpenTable is a great match for The Priceline Group. They provide us with a natural extension into restaurant marketing services and a wonderful and highly-valued booking experience for our global customers.”
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What Does This Mean For Priceline’s Stock?
On June 13, Piper Jaffray analyst Michael Olson reiterated an Overweight rating on Priceline Group Inc (NASDAQ:PCLN) with a $1485 price target. He noted, “the acquisition of OpenTable Inc (NASDAQ:OPEN) is another step in what will be a continued extension of Priceline into related categories […] Priceline has more aggressively moved into vacation rentals in recent months, the company is now adding restaurant reservations; other logical categories would include events, attractions and ride-sharing.” Olson has a +12.4% average return on all stocks and a 58% success rate in making recommendations. He also has a +19.9% average return on Priceline.
J.P. Morgan analyst Doug Anmuth also reiterated an Overweight rating for Priceline Group Inc (NASDAQ:PCLN) on June 13. He explained, “We view the move as a positive for Priceline and as a sign of new CEO Darren Huston’s willingness to expand the company’s total addressable market through close adjacent opportunities, even as the core business continues to have strong growth.” Anmuth has a +5.3% average return on all stocks and a 59% success rate in making recommendations. He also has a +17.7% average return on Priceline.
Analysts seem to agree that adding Priceline Group Inc (NASDAQ:PCLN)in their portfolio is a good move and now is the time to BUY.
Carly Forster writes about stock market news. She can be reached at [email protected]