Top Contributor: N L | Created when NASDAQ:PCLN was $153.17 | Edit | History
Recently Citigroup slapped a price target of $185 and Barclays followed with $180. Year to date PCLN is up 108.36% from a low of 73.65 and is currently trading at an all time high of $153. Where was Citigroup and Barclays when Priceline hit its low in November? It is quite easy to upgrade and initiate coverage once momentum has built up on a stock rather than making a call when the outlook seems bleak. Should an investor choose to follow these calls a return of 20% and 17% will be garnered should the price targets be reached.
The contrarian in me chooses a bet against these targets. From a macro perspective the economy is not doing that great and it seems oil is headed back towards $100 (currently $74). Unemployment is still at 10% with no improvement in site and more importantly the boost in GDP from the stimulus package will slowly begin to vanish by the end of this year.