Will the stocks of Priceline Group Inc (NASDAQ:PCLN) be able to surpass the new target price of $1600?

1145

By Stefan Larson on August 14, 2014 Consumer Staples

On August 13, 2014, the analysts at Stifel Nicolaus (NYSE:SF), one of the leading research and financial investment firms, updated the stocks rating of Priceline Group Inc (NASDAQ:PCLN). The firm gave Priceline Group Inc (NASDAQ:PCLN) a rating of ‘buy’ with a new target price of $1600.

The increased target price indicates a potential upside in he company’s stocks by around 22.7 percent.

The stocks of the company saw a decrease of 0.5 percent, and the share prices came down to 1,288.15 when the company posted its second quarter’s financial reports; Priceline Group Inc’s (NASDAQ:PCLN) growth decreased from 32 percent 29 percent. This is the second time in a row that the company has reported lower numbers.

Get Free Earning Updates on PriceLine and Other Stocks

Stocks.org has given Priceline Group Inc (NASDAQ:PCLN) a rating of ‘buy’ with a score of A-.

When asked about their recommendation, the ratings team at Stocks.org said that the company has positive investment measures, which will take the stock performance to a whole new level. It further said that Priceline Group Inc (NASDAQ:PCLN) has a strong financial position in the market together with a remarkable revenue growth and ROE. The team also commented that not only were the profit margins of the company increasing but the operational cash flow was also going up. The analysts said that currently they do not see any weakness in the management as well as the performance of the company.

Some other highlights from the Report:

The revenue growth of Priceline Group Inc (NASDAQ:PCLN) is higher than the average of the industry. Moreover, an increase of more than 26 percent can be seen in the revenues of the company when compared with the figures of the same quarter a year back. The effect of the increase seems to have trickled down to the bottom line as the earnings are on a rise.
Even though the debt to equity ratio of the company is at 0.23 right now, it is still higher than the industry average. The company has 5.32 as its quick ratio, which means that it is well capable of covering its short term cash needs.
The ROE of the company improved slightly when compared with the figures of the same quarter a year back. The improved ROE can point to a relative strength in the company. The ROE figures of the company surpass that of the industry average as well as the S&P 500.
Coming to the margins of the company, the gross profit margin is at 88.67 percent right now, which can be construed as quite a high margin. Similarly the net profit margin of Priceline Group Inc (NASDAQ:PCLN) is also better than the industry average; currently, it is at 27.14 percent.
The net cash flow for operations increased by 16.27 percent and reached to $689.98 million when compared with the figures of the same quarter a year ago. Priceline Group Inc’s (NASDAQ:PCLN) rate also exceeded the industry average of 2.15 percent.