Cowen Calls Out FBR, Says Data On Priceline Was 'Wrong'
It is not often that analysts attack each other. Cowen may have set a new precedent by calling out FBR Capital’s analysis of Priceline (NASDAQ: PCLN).
FBR looks to have missed a definition change. FBR’s research note on Priceline alleges that Priceline’s core property count is down and that the hotel business has reached "a state of relative maturity."
Cowen fired back, “As a heads up, FBR is making a cautious call on the stock today suggesting the core property count is down so far in Q2:14... Unfortunately, the count is wrong as both hotel and vacation rental properties are in fact on pace to be up so far in Q2 (total should rise 50% YoY versus our estimate of +47%). FBR might have missed the fact that PCLN changed its definition of vacation rental properties in early May ‘14.”
Despite FBR’s lesser degree of confidence in Priceline, the firm has a $1,500 price target, while Cowen has a $1,475 price target. Both firms have Outperform ratings.
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