UPDATE: Piper Jaffray Raises PT on Priceline.com Following 2Q EPS Upside

In a report published Friday, Piper Jaffray analyst Michael J. Olson reiterated an Overweight rating on Priceline.com (NASDAQ: PCLN), and raised the price target from $1,034.00 to $1,100.00.

In the report, Piper Jaffray noted, “Priceline reported material bookings & EPS upside for Q2, including a y/y bookings growth acceleration for both its domestic and int'l business. The company continues to invest in the business through aggressive marketing (both online and offline), which did result in y/y op margin de-leverage. While Priceline's EPS is currently being depressed by ongoing investment in marketing, we believe the potential for continued resulting share gains makes this near-term sacrifice justified in the interest of long-term bookings growth. We also remind investors that Priceline's 45% EBITDA margin profile remains materially above OTA competition. Regarding Q3, guidance appears conservative, as it calls for material y/y deceleration, despite an easier comp. Reiterate OW and raising PT from $1,034 to $1,100 based on 22x new FY14 EPS of $50.00.”

Priceline.com closed on Thursday at $933.75.