Booking Holdings stock price target raised to $6,850 by TD Cowen on margin upside

Published 30/07/2025, 15:38
Booking Holdings stock price target raised to $6,850 by TD Cowen on margin upside

Investing.com - TD Cowen raised its price target on Booking Holdings (NASDAQ:BKNG) to $6,850 from $6,500 while maintaining a Buy rating, citing margin upside and a clearer trend picture. The company, with a market capitalization of $180.44B, demonstrates strong financial health with a perfect Piotroski Score of 9, according to InvestingPro data.

The online travel company reported strong second-quarter results with a 7.7% increase in room nights, though this was partially offset in gross bookings value (GBV) by a 1% decline in average daily rates due to mix shifts and softer U.S. performance. The company’s impressive 86.63% gross profit margin and revenue growth of 9.47% underscore its operational efficiency. InvestingPro subscribers can access 15+ additional key metrics and insights about BKNG’s performance.

Booking Holdings has revised its 2025 outlook upward, now projecting GBV growth excluding foreign exchange effects of 7-9%, improved from the previous 4-9% range. The company also expects margins to expand by 125 basis points year-over-year, up from earlier guidance of 50-100 basis points.

TD Cowen noted that while there may be "some Q3 noise," quarter-to-date trends remain stable with softness limited to the U.S. market, and management appears comfortable with fourth-quarter expectations. The firm raised its 2025 and 2026 earnings per share estimates by 1% and 2%, respectively.

The company’s transformation program achieved $45 million in second-quarter savings, primarily in sales and other areas, with approximately $100 million in additional savings expected in the second half of the year and another $250-300 million thereafter. Management indicated that actions already taken will enable $350 million of the total projected $400-450 million in eventual annual savings. Trading at a P/E ratio of 33.64 and near its 52-week high, BKNG continues to demonstrate strong market performance. For a comprehensive analysis of Booking Holdings’ financial health and future prospects, access the detailed Pro Research Report available exclusively on InvestingPro.

In other recent news, Booking Holdings reported impressive second-quarter 2025 financial results, exceeding market expectations. The company achieved an adjusted earnings per share (EPS) of $55.40, which was significantly above the forecasted $50.14. Additionally, Booking Holdings reported revenue of $6.8 billion, surpassing the anticipated $6.54 billion. Following these strong results, JMP Securities reiterated its Market Outperform rating on the company with a price target of $6,500. Cantor Fitzgerald, however, adjusted its price target for Booking Holdings to $5,660 from $5,770, maintaining a Neutral rating. The second-quarter performance included room nights, gross bookings, and EBITDA surpassing street estimates by 2%, 1%, and 10%, respectively. Booking Holdings also raised its full-year guidance, citing resilient travel trends observed through July. These developments highlight the company’s robust financial health and optimistic outlook from analysts.

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