What goes up must come down.
After gaining more than 21.0% since releasing its third-quarter earnings, analysts think Priceline.com (nasdaq: PCLN - news - people ) is overvalued. On Monday, a Citigroup analyst downgraded the stock to "hold" from "buy," sending shares of the online travel agency into a tailspin.
Priceline.com dipped $8.83, or 7.5%, to $108.34 in Monday morning trading.
Citigroup's Mark Mahaney believes that the Norwalk, Conn.-based company is a core internet stock. However, he would prefer an entry price closer to $100.
In spite if his downgrade, Mahaney noted that Priceline.com has some strong long-term growth factors. The company has an impressive European growth platform, a business model driven by sustainable competitive advantages and positive exposure to rising prices in the global travel market due to a "value"-oriented offering. Furthermore, Mahaney believes that Priceline.com has the best management team in its sector.
After gaining more than 21.0% since releasing its third-quarter earnings, analysts think Priceline.com (nasdaq: PCLN - news - people ) is overvalued. On Monday, a Citigroup analyst downgraded the stock to "hold" from "buy," sending shares of the online travel agency into a tailspin.
Priceline.com dipped $8.83, or 7.5%, to $108.34 in Monday morning trading.
Citigroup's Mark Mahaney believes that the Norwalk, Conn.-based company is a core internet stock. However, he would prefer an entry price closer to $100.
In spite if his downgrade, Mahaney noted that Priceline.com has some strong long-term growth factors. The company has an impressive European growth platform, a business model driven by sustainable competitive advantages and positive exposure to rising prices in the global travel market due to a "value"-oriented offering. Furthermore, Mahaney believes that Priceline.com has the best management team in its sector.
1 comment:
With all these positives expected to play out in the long-term, Mahaney fears that there are few, if any, positive drivers in the near-term.
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