Benchmark raises Booking Holdings stock price target to $6,200 on strong growth

Published 30/07/2025, 16:52
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Investing.com - Benchmark raised its price target on Booking Holdings (NASDAQ:BKNG) to $6,200 from $6,000 on Wednesday, while maintaining a Buy rating following the company’s second-quarter earnings report. This aligns with broader analyst optimism, as InvestingPro data shows seven analysts have recently revised their earnings estimates upward for the upcoming period.

The travel giant posted what Benchmark described as a "strong 2Q print" alongside raised full-year guidance across all metrics, despite issuing a softer third-quarter room-night outlook that caused shares to trade modestly lower in after-hours trading Tuesday. The company’s financial strength is evident in its impressive 86.63% gross profit margins and perfect Piotroski Score of 9, according to InvestingPro metrics.

Benchmark highlighted Asia-Pacific and Latin America as areas of strength for Booking Holdings, with management specifically noting during the earnings call that APAC would continue to lead growth. The company reported low single-digit growth in the U.S. market, where it expects to continue making incremental market share gains.

For the first time on an earnings call, Booking management revealed it had achieved approximately 75% of Airbnb’s size in terms of room nights, suggesting its alternative accommodation business is reaching "an initial level of maturity" despite still growing 10% in the quarter.

Benchmark noted that Booking Holdings trades at nearly 16 times estimated 2026 cash EBITDA, requiring the company to maintain its growth and margin story, which the firm believes appears secure over the medium term. Currently trading at an EV/EBITDA multiple of 21x and a P/E ratio of 34.31x, InvestingPro analysis suggests the stock is slightly overvalued at current levels, though the company maintains a "GREAT" overall financial health score.

In other recent news, Booking Holdings reported strong financial results for the second quarter of 2025, with adjusted earnings per share (EPS) reaching $55.40, surpassing the forecasted $50.14. The company’s revenue also exceeded expectations, coming in at $6.8 billion compared to the anticipated $6.54 billion. Following these results, Booking Holdings raised its full-year guidance, driven by strong travel trends observed through July. Analysts have responded to these developments with varied actions. TD Cowen increased its price target for Booking Holdings to $6,850, citing margin upside and a clearer trend picture. BMO Capital also raised its price target to $6,000, attributing this to strong demand in Asia and Europe. On the other hand, Cantor Fitzgerald lowered its price target to $5,660, maintaining a Neutral rating despite the company’s performance exceeding estimates. JMP Securities reiterated its Market Outperform rating, setting a price target of $6,500, reflecting confidence in the company’s ongoing growth.

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