D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
On Wednesday, Benchmark analysts maintained a Buy rating and a price target of $5,000 for Booking Holdings stock (NASDAQ:BKNG), which currently trades at $5,168.62 with a market capitalization of nearly $170 billion. According to InvestingPro data, the stock is trading near its 52-week high of $5,337.24. The firm’s analysts anticipate Booking Holdings to report its earnings after market close on Thursday, following positive performance from peers Airbnb (NASDAQ:ABNB) and Expedia (NASDAQ:EXPE), which both saw their share prices jump after releasing their earnings.
The analysts highlighted that Booking Holdings might face a tougher challenge to match the success of Airbnb and Expedia, as the latter two had lower expectations, particularly regarding EBITDA margins. With an impressive EBITDA of $7.18 billion and an industry-leading gross profit margin of 84.67%, the consensus for Booking Holdings suggests an EBITDA margin expansion of approximately 120 basis points year-over-year. This forecast aligns with the company’s own projections for better margin expansion in 2025 compared to 2024 but leaves less room for outperformance.
Despite these challenges, Benchmark analysts are optimistic that Booking Holdings will benefit from accounting for all known one-time impacts in the first quarter, such as foreign exchange and Leap Year comparisons. These adjustments are expected to aid the immediate guidance, while the fourth quarter is anticipated to be strong, as indicated by the overall positive trend in the travel sector.
The firm also noted that they considered raising the price target to $5,700, which would reflect the 2024 EBITDA multiple on the current year’s earnings. However, they have decided to wait until after Booking Holdings releases its earnings report before making any adjustments to the price target.
Booking Holdings is set to round out the earnings reports for the online travel agency (OTA) universe. The company’s performance and its ability to meet or exceed expectations will be closely watched by investors, especially in light of the successful earnings reports from its industry counterparts. InvestingPro analysis shows the company has delivered strong results, with revenue growth of 11.74% and a remarkable six-month price return of 39.45%. For deeper insights into BKNG’s valuation and 12+ additional ProTips, plus comprehensive financial analysis, check out the full Pro Research Report available on InvestingPro.
In other recent news, Booking Holdings has garnered attention with various analyst ratings and corporate updates. Evercore ISI maintained an Outperform rating for Booking Holdings, suggesting the company might exceed fourth-quarter revenue and earnings estimates due to strong travel demand and industry data. TD Cowen also reiterated a Buy rating, highlighting Booking Holdings’ cost efficiency plan and its unique position in leveraging advertising costs. The firm anticipates strong quarterly results, reflecting the growth seen in other online travel agencies like Expedia and Airbnb.
Meanwhile, Truist Securities slightly raised its price target for Booking Holdings to $4,720, maintaining a Hold rating. The firm noted the company’s strong market position in Europe and the Asia-Pacific region as positive factors. Cantor Fitzgerald, however, revised its price target down to $4,900, maintaining a neutral stance due to concerns about the impact of AI agents on direct consumer relationships in the travel industry. Despite these concerns, Cantor Fitzgerald emphasized Booking Holdings’ strong supplier relationships as a competitive advantage.
In corporate developments, Priceline, part of Booking Holdings, appointed Sejal Amin as Chief Technology Officer. Amin’s role will focus on advancing Priceline’s technology and integrating AI, enhancing the company’s travel offerings. These developments reflect a dynamic period for Booking Holdings as it navigates market opportunities and technological advancements.
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