Booking Holdings Upgraded to Buy Amid AI Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy BKNG?
Source: CNBC
- Rating Upgrade: Gordon Haskett Research Advisors upgraded Booking Holdings from hold to buy, with analyst Robert Mollins setting a price target of $5,440, indicating a 28% upside, reflecting strong conviction in the company's potential.
- Market Reaction: Despite a 14% decline in share price over the past 12 months and a 21% drop this year, the analyst believes investors have overreacted to AI competition fears, overlooking Booking's operational advantages and defensive moat.
- Financial Expectations: Ahead of the fourth-quarter earnings report on February 18, Mollins anticipates that the company will exceed current consensus and guidance in room nights, which should positively impact revenue, EBITDA, and EPS performance.
- Investment Opportunity: The analyst highlights that the current valuation presents a compelling buying opportunity, especially as the valuation premium relative to peers narrows despite significantly stronger margins, suggesting a low-risk, high-reward investment scenario.
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Analyst Views on BKNG
Wall Street analysts forecast BKNG stock price to rise
25 Analyst Rating
18 Buy
7 Hold
0 Sell
Moderate Buy
Current: 4159.100
Low
5407
Averages
6153
High
6850
Current: 4159.100
Low
5407
Averages
6153
High
6850
About BKNG
Booking Holdings Inc. is a provider of travel and restaurant online reservation and related services. The Company offers its services through five primary consumer-facing brands: Booking.com, Priceline, Agoda, KAYAK, and OpenTable. Through its brands, consumers can book an array of accommodations (including hotels, motels, resorts, homes, apartments, bed and breakfasts, hostels, and other alternative and traditional accommodation properties) and a flight to their destinations; make a car rental reservation or arrange for an airport taxi; make a dinner reservation; or book a vacation package, tour, activity, or cruise. Consumers can also use its meta-search services to easily compare travel reservation information, such as flight, hotel, and rental car reservations from hundreds of online travel platforms at once. Booking.com offers accommodation reservation services for approximately 4.0 million properties in over 220 countries and territories and in over 40 languages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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