Booking Holdings stock price target lowered to $6,000 at TD Cowen

On Wednesday, TD Cowen analysts adjusted their outlook on Booking Holdings (NASDAQ:BKNG), reducing the company’s price target from $6,500.00 to $6,000.00. Despite this change, they maintained a Buy rating on the stock. According to InvestingPro data, the company currently trades at $4,787.01 with a market capitalization of $157 billion, and analysis suggests the stock is trading above its Fair Value. The analysts cited currency fluctuations as a significant factor influencing their decision, noting that the recent weakening of the US dollar by 7.5% since the Q4 earnings call has helped to balance any modest slowing observed thus far. Booking Holdings, which has approximately 85% of its exposure in international markets, is considered to be well-positioned to weather these currency changes.

The TD Cowen team also observed that excluding the effects of foreign exchange (FX), trends remain above the company’s 2025 guidance. They highlighted Booking Holdings’ unique position as the only major online travel agency (OTA) that has leverage over advertising costs, which contributes to the highest margins within its peer group. The analysts pointed out that for the year 2024, Booking Holdings achieved an EBIT margin of 33%. InvestingPro data confirms the company’s impressive profitability, with a gross profit margin of 85.87% and annual revenue of $23.74 billion.

In their analysis, TD Cowen adjusted their estimates for the number of nights booked and the average daily rate (ADR), but they increased their earnings per share (EPS) projections on account of favorable FX movements and share repurchases. They reiterated their stance on Booking Holdings as their Top Pick, setting a new price target of $6,000 based on a 24 times multiple of the company’s projected 2026 earnings per share. The analysts remain confident in the company’s strategic positioning and financial performance despite the revised price target. InvestingPro reveals additional insights about BKNG’s financial health, with an overall score of "GREAT" and 8 more exclusive ProTips available to subscribers, along with a comprehensive Pro Research Report covering what really matters for investors.

In other recent news, Booking Holdings has experienced several notable developments. Cantor Fitzgerald lowered its price target for the company from $5,540 to $4,330, maintaining a Neutral rating. This adjustment reflects expectations of reduced sensitivity to short-term economic factors in the U.S., though the company may still face challenges in discretionary spending. Meanwhile, JMP analysts also revised their price target for Booking Holdings to $5,600 from $6,100, while keeping a Market Outperform rating, citing the company’s strong international presence as a mitigating factor against potential declines in U.S. tourism. Similarly, Citizens JMP adjusted their price target to $5,600, emphasizing Booking Holdings’ strong market position and potential for market share growth.

In a strategic move, Booking Holdings’ OpenTable has partnered with Uber (NYSE:UBER) to enhance dining and transportation experiences in several countries. This collaboration aims to integrate Uber’s services with OpenTable’s restaurant network, facilitating seamless dining reservations and transport options for users. Additionally, Erste Group downgraded Booking Holdings’ stock from Buy to Hold, expressing concerns about the impact of declining consumer confidence in the U.S. on future earnings growth. Despite these challenges, Booking Holdings’ robust technology and higher operating margins remain noteworthy strengths. These recent developments highlight the company’s ongoing efforts to navigate a fluctuating economic landscape while maintaining its competitive edge.

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