Bernstein reiterates Market Perform rating on Booking Holdings stock

Investing.com - Bernstein maintained its Market Perform rating and $5,433.00 price target on Booking Holdings (NASDAQ:BKNG) stock, following the company’s strong quarterly results. The travel giant currently trades at $5,075.86, slightly above its InvestingPro Fair Value estimate, with a market capitalization of $164.29 billion.

The travel giant reported room night growth of 8%, exceeding guidance by 2.5% and consensus estimates by 2%. EBITDA grew 15%, beating expectations by 5.6%, according to Bernstein analyst Richard Clarke. This performance aligns with Booking’s impressive 86.77% gross profit margin and overall revenue growth of 11.72% over the last twelve months.

Booking Holdings now expects to achieve 10% revenue growth and high-teens EBITDA growth for the year, despite challenging U.S. macroeconomic conditions and tough European comparisons. The company’s Q4 guidance suggests no slowdown is anticipated. InvestingPro data shows the company maintains a "GREAT" financial health score of 3.26, operating with a moderate level of debt.

The analyst noted that while AI developments have caused stock volatility throughout 2025, they haven’t impacted Booking’s short-term fundamentals. The stock has fluctuated with various AI-related news, including the company’s ChatGPT app launch and concerns about potential OTA bypass solutions.

Bernstein acknowledged Booking’s strong execution but indicated the quarterly results may not fully resolve ongoing debates about AI’s potential impact on the company’s business model and commission structure.

In other recent news, Booking Holdings reported quarterly earnings that significantly exceeded consensus expectations, although fourth-quarter guidance was only in line with revenue and EBITDA projections. Benchmark responded by raising its price target for the company to $6,400, maintaining a Buy rating. Cantor Fitzgerald, however, lowered its price target to $5,550, keeping a Neutral rating despite the company’s third-quarter results surpassing the high-end of previous guidance in several key metrics. Truist Securities also raised its price target to $5,810, citing a strong third-quarter performance and stable travel trends, while maintaining a Buy rating.

RBC Capital reiterated its Outperform rating with a $6,100 price target, highlighting stronger-than-expected growth in the U.S. market and improved cost efficiencies. Piper Sandler maintained a Neutral rating with a $5,750 price target, noting solid third-quarter results driven by a reacceleration in the U.S. market and strong performance in Asia. These recent developments provide investors with varying perspectives on Booking Holdings’ financial outlook and market positioning.

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