DA Davidson raises Booking Holdings stock price target to $6,500 on solid Q2 results

Published 31/07/2025, 16:40
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Investing.com - DA Davidson raised its price target on Booking Holdings (NASDAQ:BKNG) to $6,500 from $5,750 on Thursday, while maintaining a Buy rating on the online travel company’s stock. With a market capitalization of $182 billion and a perfect Piotroski Score of 9, InvestingPro data shows the company maintains excellent financial health with a "GREAT" overall rating.

The price target increase follows what DA Davidson described as "solid 2Q’25 results across the board," with room night growth of 8% exceeding the company’s guidance range of 4-6%. The company’s impressive 86.63% gross profit margin and 9.47% revenue growth demonstrate its operational efficiency. According to InvestingPro, there are 13 additional key insights available for subscribers.

The firm noted that Booking’s strong performance was primarily driven by strength in Europe and Asia, alongside continued solid operating expense management during the quarter.

Gross bookings increased 13% on a reported basis and 9% excluding foreign exchange effects, approximately 100 basis points higher than room night growth, with a roughly 200 basis point tailwind from higher flight gross bookings.

This positive momentum was partially offset by a decrease in foreign exchange-neutral accommodation average daily rates of approximately 1%, which DA Davidson attributed to slower growth in the high-average-daily-rate U.S. market.

In other recent news, Booking Holdings has seen a series of changes in analyst ratings and price targets following its latest financial results. Benchmark raised its price target for the company to $6,200, maintaining a Buy rating after Booking’s second-quarter earnings report showed strong growth and revised full-year guidance, despite a softer outlook for the third quarter. Meanwhile, RBC Capital increased its price target to $6,100, emphasizing Booking’s leadership in its category and its capital return program as positive factors.

Piper Sandler also adjusted its price target to $5,750, citing the company’s performance in Asia as a key strength. BMO Capital followed suit, raising its target to $6,000, attributing the increase to robust travel demand in Asia and Europe. On the other hand, Wedbush downgraded Booking Holdings from Outperform to Neutral due to concerns about the company’s valuation, despite several quarters of results that exceeded expectations. These developments reflect a mix of optimism and caution among analysts regarding Booking Holdings’ future performance.

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