After close yesterday, Priceline (PCLN) reported Q2 upside to both their EPS ($1.55 vs. $1.41 consensus) and revenue ($514 million vs. $496 million consensus). The online travel company also raised its full-year earnings outlook to between $5.50 to $5.85 per share, from its previous guidance range of $5.25 to $5.65 per share.
Great news, right?
Nope. PCLN tanked 19% in aftermarket trading due to soft international performance. Currently, the stock is still down 15%.
Priceline bull Bank of America says this is ridiculous. The bank believes the sell-off was a result of an overreaction to European bookings growth coming in at the low end of guidance. BofA believes that traders are ignoring the outperformance of EPS and revenues as well as the increased guidance. They expect a quick rebound. Of course, that rebound now needs to be 55% to reach their target.
Bank of America reiterates BUY on Priceline (PCLN), target $155.
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