Texas Roadhouse earnings missed by $0.05, revenue topped estimates
On Friday, BMO Capital Markets updated its outlook on Booking Holdings (NASDAQ:BKNG), raising the price target to $5,900 from the previous $5,155, while maintaining an Outperform rating on the stock. The upward revision reflects the firm’s positive view on the company’s future performance. Currently trading at $5,018.23, the company commands a market capitalization of $166.25 billion. According to InvestingPro analysis, the stock is trading above its calculated Fair Value, with a high P/E ratio of 33.8x relative to near-term earnings growth.
According to BMO Capital’s analyst Brian J. Pitz, Booking Holdings is outpacing its online travel agency (OTA) peers in terms of growth in Gross Bookings and Room Nights. The fourth quarter of 2024 saw the company achieve higher growth rates than its competitors in these key performance indicators. This performance is reflected in the company’s impressive gross profit margin of 85.87% and revenue of $23.74 billion over the last twelve months. InvestingPro data shows the company maintains a "GREAT" financial health score of 3.48 out of 5, indicating strong operational efficiency.
Pitz highlighted the company’s successful expansion into alternative accommodations, noting an 8% year-over-year increase in listings, which reached 7.9 million by the end of 2024. This growth is seen as a significant contributor to the company’s strong position in the market.
The analyst also pointed to Booking Holdings’ guidance for a 100-basis point expansion in EBITDA margin for the year 2025, driven by the use of artificial intelligence to enhance profitability. The firm’s updated estimates for Gross Bookings are now set at $176 billion for 2025 and $189 billion for 2026, an increase from the previous forecasts of $174 billion and $187 billion, respectively.
BMO Capital’s continued Outperform rating and revised price target reflect confidence in Booking Holdings’ strategic initiatives and its potential for further growth, leveraging technology and market position to create additional value for shareholders.
In other recent news, Booking Holdings has reported strong fourth-quarter earnings, prompting several analysts to adjust their price targets for the company. Piper Sandler raised its price target to $5,120, maintaining a Neutral rating, following the company’s consistent pattern of meeting or exceeding expectations and raising future guidance. Evercore ISI increased its target to $5,500, citing strong results across geographic markets and travel verticals, and maintained an Outperform rating. Goldman Sachs also raised its target to $5,020, highlighting the company’s operational efficiency and strategic focus on artificial intelligence, while keeping a Neutral rating.
JPMorgan set a new price target of $5,750, noting the company’s robust growth in room nights and gross bookings, and maintained an Overweight rating, reflecting confidence in Booking Holdings’ strategic initiatives. Citi analysts increased their target to $5,800, emphasizing the company’s impressive performance in the alternative accommodation segment and its strong direct consumer bookings. Citi also highlighted the company’s advancements in artificial intelligence and its $20 billion share buyback program as factors contributing to their positive outlook. These developments reflect Booking Holdings’ ongoing efforts to strengthen its market position and drive future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.