NEW YORK (TheStreet) -- Shares of Priceline Group Inc. (PCLN) are lower by 1.06% to $1,141 in pre-market trading on Tuesday, following a ratings downgrade to "market perform" from "outperform" at FBR Capital Markets.
The firm said it reduced its rating on the online travel company as the company's guidance suggests that its growth is decelerating.
FBR Capital Markets has a $1,225 price target on Priceline stock.
Must Read: Warren Buffett's 25 Favorite Stocks
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Additionally, the CEO of Priceline, Darren Huston said he would consider further takeovers after the company made the biggest deal in its history with the $2.6 billion acquisition of Open Table, a restaurant reservation website, the Wall Street Journal reports.
Priceline has been growing over the past decade with the purchases of travel websites such as Kayak.com and booking.com. But the CEO warned that Priceline will not become a "serial acquirer," the Journal added.
"We have six brands at the table," Huston told the Journal. "We can't have 15."
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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."