Booking stock price target raised to $6,000 by Susquehanna

On Monday, Susquehanna maintained a Positive rating on Booking Holdings (NASDAQ:BKNG) and raised the company’s price target from $5,500 to $6,000. This adjustment comes following a reevaluation of the company’s financial estimates. Currently trading at $4,990, the stock has shown impressive momentum with a 43.6% return over the past year. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The firm’s analyst provided insight into the rationale behind the price target increase, stating that despite a 2% reduction in the 2025 revenue estimate for Booking Holdings, expectations for EBITDA and EPS have been adjusted upwards by 1% and 2%, respectively. This revision reflects a more efficient operational outlook for the company, supported by its impressive 85.9% gross profit margin and strong revenue growth of 11.1% over the last twelve months.

Looking ahead, Susquehanna has set forth estimates for the year 2026, predicting an 8% year-over-year revenue growth, EBITDA margins at 36%, and earnings per share (EPS) to reach $243.93. These projections are instrumental in the firm’s decision to lift the price target. InvestingPro data reveals the company maintains a GREAT financial health score, with particularly strong profitability metrics.

The methodology behind the new price target involves a blended valuation approach. Susquehanna applies a 25x multiple to the company’s projected 2026 price-to-earnings (P/E) and an 18x multiple to the 2026 enterprise value/EBITDA (EV/EBITDA). This calculation underpins the increased price target.

The raised price target to $6,000 from $5,500 is based on these updated financial metrics and valuation methods, as the firm rolls its valuation forward to the year 2026. Susquehanna’s analysis indicates a positive outlook for Booking Holdings, as reflected in the sustained Positive rating and the higher price target.

In other recent news, Booking Holdings has reported a strong fourth-quarter performance, capturing the attention of several analyst firms. Citizens JMP maintained a Market Outperform rating with a steady price target of $6,100, highlighting the company’s effective use of social marketing and cost management strategies. UBS raised its price target for Booking Holdings to $5,960, noting a 13% year-over-year growth in Room Nights booked and suggesting potential for upward revisions to conservative first-quarter forecasts. TD Cowen increased their price target to $6,500, citing significant growth in overnight bookings and a robust shareholder return program, including a $20 billion increase in buyback authorization.

RBC Capital Markets also raised its price target to $5,900, crediting Booking Holdings’ ability to consistently exceed earnings expectations and its strategic growth initiatives. Benchmark followed suit, increasing their price target to $5,900 as well, while maintaining a Buy rating, despite noting a more conservative margin expansion guidance. Analysts across the board have expressed confidence in Booking Holdings’ strategic initiatives, including the Connected Trip and Genius Loyalty programs, which are expected to drive further growth.

The company’s commitment to reinvestment in growth and transformation is seen as a key factor in its competitive positioning. Booking Holdings’ strong financial health and market position are underscored by its ability to outperform competitors and maintain a positive outlook among analysts. These developments indicate a sustained confidence in the company’s growth trajectory and market leadership.

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