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Investing.com - RBC Capital has raised its price target on Booking Holdings (NASDAQ:BKNG) to $6,100 from $5,900 while maintaining an Outperform rating on Wednesday. The new target sits within the broader analyst range of $4,800 to $7,218, with the stock currently trading near $5,650.
The adjustment follows what RBC Capital described as a "mixed" quarter for the online travel agency, with the firm citing Booking’s category leadership and capital return program as key factors supporting its continued positive outlook. The company maintains impressive gross profit margins of 86.6% and generated $24.1 billion in revenue over the last twelve months. According to InvestingPro, Booking holds a perfect Piotroski Score of 9, indicating strong financial health.
RBC Capital noted that Booking Holdings demonstrates "high confidence in a conservative guide" and benefits from a favorable shift toward mobile and direct bookings, which the firm believes reduces long-term risk from large language models (LLMs).
The research firm also highlighted several growth opportunities for Booking, including "multiple less developed customer acquisition tools" such as air travel, activities, loyalty programs, and payments services.
RBC Capital expressed some concerns, however, noting "incrementally worse" U.S. macroeconomic commentary, low-single-digit room night exit rates, and tough comparisons expected in Q4 that may drive debate about appropriate valuation multiples for the stock. The company’s stock has shown strong momentum with a 51.4% return over the past year, though it currently trades at a relatively high P/E ratio of 34.6x.
In other recent news, Booking Holdings reported strong second-quarter results, surpassing analyst expectations with room nights, gross bookings, and EBITDA exceeding estimates by 2%, 1%, and 10%, respectively. Despite these positive results, Cantor Fitzgerald lowered its price target for the company to $5,660, maintaining a Neutral rating. Meanwhile, Piper Sandler adjusted its price target to $5,750, also maintaining a Neutral stance, following improved macroeconomic conditions. Benchmark raised its price target to $6,200 and kept a Buy rating, highlighting the company’s robust performance and raised full-year guidance. BMO Capital increased its target to $6,000, citing strong demand in Asia and Europe as key drivers. TD Cowen set a new target of $6,850, maintaining a Buy rating due to margin improvements and a clearer trend outlook. These developments reflect a varied but generally positive analyst sentiment towards Booking Holdings, focusing on strong earnings and growth potential.
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