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Monday, shares of Booking Holdings (NASDAQ:BKNG), currently trading around $5,032, may see increased investor interest following DA Davidson’s decision to raise the company’s price target to $5,800 from $5,005. The firm maintains a Buy rating on the stock, citing strong fourth-quarter performance and positive growth prospects for the current year. According to InvestingPro data, the stock has shown impressive momentum with a 30.8% gain over the past six months.
The upgraded price target comes after Booking Holdings reported fourth-quarter results that surpassed both consensus estimates and the company’s own guidance. A notable 13% increase in room night growth was a key highlight, with improvements seen across all regions. Each region experienced double-digit growth in nights booked, indicating a robust demand for travel services. InvestingPro analysis reveals the company’s exceptional gross profit margin of 85.87% and an overall financial health score of "GREAT," underlining its operational efficiency.
DA Davidson’s analyst pointed out that the underlying strength in the travel sector continued into January. This momentum has led to a positive outlook for the first quarter, with Booking Holdings expected to achieve results aligned with its long-term growth framework. The company anticipates at least 8% growth in gross bookings and revenue, as well as an over 15% increase in earnings per share for the calendar year 2025, all on a foreign exchange-neutral basis.
The analyst’s comments reflect confidence in Booking Holdings’ ability to sustain its growth trajectory amidst a recovery in the travel industry. "We affirm our BUY rating on BKNG after its strong 4Q’24 print, which included upside vs. consensus (and the high-end of company guidance ranges) across all key metrics," the DA Davidson analyst stated. The company’s recent performance is backed by solid fundamentals, with revenue growing at 11.11% and maintaining a healthy current ratio of 1.31, as reported by InvestingPro.
Investors will likely monitor Booking Holdings as it aims to deliver on its growth promises for the year, potentially reinforcing the company’s position in the competitive online travel market. The raised price target underscores the firm’s belief in the company’s continued performance and strategic initiatives. For deeper insights into Booking Holdings’ valuation and growth prospects, investors can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Booking Holdings reported strong fourth-quarter results, with room nights exceeding expectations by 4%, revenue by 6%, and EBITDA by 12%. However, free cash flow saw a significant 49% year-over-year decline, falling short of projections by 40% due to a decrease in customer deposits. Analysts at Bernstein maintained a Market Perform rating with a $5,200 target, noting conservative guidance for Q1 and potential risks related to AI developments. Susquehanna raised its price target for Booking Holdings from $5,500 to $6,000, reflecting an upward revision in EBITDA and EPS expectations despite a 2% reduction in the 2025 revenue estimate. Citizens JMP reiterated a Market Outperform rating with a $6,100 target, highlighting the company’s effective use of social marketing and fixed-cost leverage. UBS increased its price target to $5,960, maintaining a Buy rating and acknowledging Booking’s market share gains and strategic initiatives like the Genius Loyalty program. TD Cowen lifted its target to $6,500, citing strong performance in overnight bookings and a significant increase in shareholder returns, including a $20 billion boost to its buyback authorization and a 10% dividend increase.
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