Prudential Lifts Priceline Target
Prudential raised the price target on Priceline.com (PCLN ).
Analyst Mark Rowen says strong Q1 results met his revenue target and beat his bottom-line estimate. He says he's pleased to see improving demand, but remains concerned about the ultimate size of Priceline's market for restricted travel.
Rowen is hopeful that results reflect a turning point in consumer demand for Priceline's services, however, he thinks the recent run-up in the stock already reflects the company's leadership position in the "value" travel segment and its improved outlook. He raised his $3 target to $5 and reiterates hold.