Kevin Kopelman, an analyst from TD Cowen, maintained the Buy rating on Booking Holdings (BKNG – Research Report). The associated price target was raised to $6,500.00.
Kevin Kopelman’s rating is based on several compelling factors that highlight Booking Holdings’ strong market position and growth potential. Firstly, the company exited 2024 with the fastest growth among the “Big 3” online travel agencies, showcasing a significant increase in gross booking value. Additionally, Booking Holdings is distinguishing itself by achieving higher margins, benefiting from advertising cost leverage and a new multi-year cost efficiency plan, which has positioned it as the primary contributor to EBIT growth among its peers.
Moreover, the company’s substantial share repurchase program and its impressive scale, with over 1.1 billion room nights booked, underscore its robust market presence. Booking Holdings is also experiencing growth in alternative and rental accommodations, which is outpacing the industry average. The company’s strategic initiatives, including cost savings and share repurchases, are expected to drive significant profit growth, making it well-positioned to withstand potential macroeconomic challenges. Furthermore, its valuation remains attractive compared to peers, and its ability to leverage AI and reduce foreign exchange headwinds further supports the Buy rating.
In another report released on March 4, Evercore ISI also reiterated a Buy rating on the stock with a $5,500.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BKNG in relation to earlier this year.
Questions or Comments about the article? Write to editor@tipranks.com