The firm reduced the price target for the online travel agency company to $1,450, down from its previous mark of $1,550.
Credit Suisse set 12-month EPS estimates at $52.67 from $53.40 for fiscal 2014, at $56.09 from $68.40 for fiscal 2015, and at $84.30 from $69.04 for fiscal 2016.
The firm said it lowered Priceline Group's estimates given the company's exposure to Europe.
"While the incremental offline ad-spend does imply deleverage, given PCLN's discipline, in a downside scenario if sufficient [return on investment] is not achieved the spend would be discontinued, while in a best-case scenario could lead to incremental topline growth," said Credit Suisse analyst Dean Prissman.
Shares of Priceline Group are down 0.27% to $1,094.79 in afternoon trading.
Separately, TheStreet Ratings team rates PRICELINE GROUP INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate PRICELINE GROUP INC (PCLN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 26.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although PCLN's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 5.32, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet & Catalog Retail industry and the overall market, PRICELINE GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for PRICELINE GROUP INC is currently very high, coming in at 88.67%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.14% significantly outperformed against the industry average.
- Net operating cash flow has increased to $689.98 million or 16.27% when compared to the same quarter last year. In addition, PRICELINE GROUP INC has also modestly surpassed the industry average cash flow growth rate of 9.75%.
- You can view the full analysis from the report here: PCLN Ratings Report