Priceline.com (PCLN) is one of the leading online travel companies in the world. The company’s third quarter results beat consensus estimates on both the top and bottom lines.
Management expects strong double-digit bookings growth in both domestic and international businesses in the fourth quarter. The company grew strongly in 2008 and the growth rate has continued through the first three quarters of 2009 despite recessionary pressures.
The current momentum in the business, international growth opportunities, good execution, prudent marketing strategy and strong financial position are positives. Occupancy, tax-related litigation and declining ADRs are things to watch. We are initiating coverage of PCLN shares with an Outperform rating.Zacks Investment Research
