Priceline Group (PCLN) boosted by Cuba?
It seems everyone is now sipping Havana Club and having a grand old time in the new Cuba. For their doors have finally opened to the world, with US restoring diplomatic and economic ties that were put in place in 1950.
Of course, as you would expect, corporate America and their evil execs have already stuck their grubby hands into this beautiful country…undoubtedly looking to advantage of a potentially new hot economy.
Last week alone, Cuba had a visit from President Obama, played a Major League Baseball game with the national team and the Tampa Bay Rays and had a Rolling Stones concert to top it all off. Clearly it seems the place to be with many having a ‘cha-ching’ moment. With the typical emerging markets struggling, Europe struggling for growth a new player may just be where all the money flocks to.
Major multinationals are already operating in this hot new market such as heavyweight hotel chain Starwood and cruise liner Carnival. With hotels rocketing up to $600 per night for the Rolling Stones concert we could be in for a very long party indeed.
So what’s the best way to play it? Well, tourism is surely going to go through the roof and that could represent the best play of the year. Priceline Group (PCLN) looks set to ride this party wave as one of their brands, Booking.com, will be the first digital travel brand to launch instantly bookable hotels in Cuba.
For those of you living in the Cuban dark ages, Booking.com, is a world leader in online hotel and accommodation booking covering more than 87,000 destinations (how many can you name?!) in over 220 countries! Their owner Priceline Group are looking pretty damn strong too with last year’s revenue over $9billion, up from $8billion in 2014 and up from $6billion in 2013! Not a bad trend at all.
Priceline’s stock price has also fared quite well considering what’s happening in the world right now. Currently trading at $1,292 we believe a future price target of $1,500 is possible.
Now we’ve established a solid macro theme it’s all about timing these trades or investments which requires strategies and guidance. Good luck!