BMO Capital raises Booking Holdings stock price target to $6,000 on travel demand

Investing.com - BMO Capital raised its price target on Booking Holdings (NASDAQ:BKNG) to $6,000 from $5,700 on Wednesday, while maintaining an Outperform rating on the stock. The company, which boasts a perfect Piotroski Score of 9 according to InvestingPro data, has demonstrated remarkable financial strength with an impressive 86.63% gross profit margin.

The price target increase follows Booking Holdings’ solid performance in bookings and adjusted EBITDA, which BMO attributes to strong demand in Asia and Europe, growth in room nights, and favorable foreign exchange conditions. This performance is reflected in the company’s robust 51.42% return over the past year and $24.09 billion in revenue.

Despite macroeconomic uncertainty, Booking Holdings’ management raised its fiscal year 2025 guidance for gross bookings and adjusted EBITDA, citing steady global travel demand.

BMO has increased its 2025 and 2026 gross bookings estimates for the company to $183 billion and $197 billion, respectively, up from previous estimates of $179 billion and $192 billion.

The revised outlook is based on three key factors: relatively stable global travel demand, continued contributions from the company’s Genius loyalty program, and execution of its Connected Trip strategy.

In other recent news, Booking Holdings reported strong financial results for the second quarter of 2025, with an adjusted earnings per share of $55.40, surpassing the forecasted $50.14. The company also exceeded revenue expectations, reporting $6.8 billion against the anticipated $6.54 billion. Following these results, Booking Holdings raised its full-year guidance, supported by resilient travel trends observed through July. Analysts have responded to these developments with varied assessments. TD Cowen raised its price target to $6,850, maintaining a Buy rating due to margin upside. Meanwhile, Cantor Fitzgerald lowered its price target to $5,660, maintaining a Neutral rating despite the company’s performance exceeding expectations in room nights, gross bookings, and EBITDA. JMP Securities reiterated its Market Outperform rating, with a price target of $6,500, emphasizing the company’s strong results. These recent developments highlight Booking Holdings’ positive financial performance and the varying analyst perspectives on its future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.