Priceline.com (Nasdaq: PCLN) rose 2 1/2 to 49 Monday after Goldman Sachs analyst Anthony Noto reiterated his view that the stock belongs on his firm’s “recommended list.”
A tentative ruling by the Financial Accounting Standards Board means the company will not have to change its formula for revenue recognition, Noto wrote in a research note. The perception that the board might make the company change the way it accounts for sales of airline tickets, car rentals and hotel reservations “has been viewed as a risk” to the stock, he said.
Priceline, down from a 52-week high of 119 last June, remains at the low end of Goldman Sachs’ valuation range of 40 to 165. The stock has suffered along with those of other e-tailers amid concerns about profits.