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Investing.com - JMP Securities has reiterated its Market Outperform rating on Booking Holdings (NASDAQ:BKNG) with a price target of $6,500 following the company’s second-quarter 2025 financial results. The company, which boasts an impressive 86.6% gross profit margin and a perfect Piotroski Score of 9 according to InvestingPro data, continues to demonstrate strong financial health.
Booking Holdings exceeded analyst expectations in the second quarter, with bookings coming in approximately 1% above consensus and EBITDA surpassing estimates by around $220 million. The company subsequently raised its full-year guidance based on these strong results and resilient travel trends observed through July. This performance has contributed to the stock’s impressive 51.4% return over the past year, though InvestingPro’s Fair Value analysis suggests the stock is currently trading slightly above its intrinsic value.
Despite the positive performance, Booking’s third-quarter 2025 guidance indicates a significant deceleration in growth metrics. Room night growth at the midpoint is expected to slow to 4.5% year-over-year, down from 8% in the first quarter, while gross bookings excluding foreign exchange effects are projected to grow 5% year-over-year at the midpoint, compared to 9% in the second quarter.
JMP Securities suggests this guidance may be conservative, noting that Booking has observed steady travel trends across all geographic regions through July. The firm believes management is prudently setting expectations amid ongoing macroeconomic and geopolitical uncertainties.
The research firm remains confident in Booking’s long-term growth prospects, citing potential catalysts including Asia penetration, alternative accommodations expansion, connected trip growth, and AI product releases, alongside the company’s ongoing Transformation Program aimed at driving cost reductions while reinvesting in the business. With revenue growing at 9.5% and seven analysts recently revising earnings upward, InvestingPro analysis reveals 15 additional key insights about BKNG’s financial outlook. For comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Booking Holdings Inc. reported impressive financial results for the second quarter of 2025, surpassing market expectations. The company achieved an adjusted earnings per share (EPS) of $55.40, which was well above the forecasted $50.14. Additionally, Booking Holdings reported revenue of $6.8 billion, exceeding the anticipated $6.54 billion. These figures highlight the company’s strong performance in the recent quarter. Despite the positive earnings report, the stock showed a slight decline in regular trading. However, it experienced a minor uptick in after-hours trading. Investors and analysts are likely to keep a close eye on Booking Holdings as these developments unfold.
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