OpenTable Inc (OPEN) is Traveling to Priceline Group Inc (PCLN)
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.”
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.