Evercore ISI holds Booking Holdings stock Outperform rating

On Wednesday, Evercore ISI analysts maintained their Outperform rating on Booking Holdings (NASDAQ:BKNG) with a steady price target of $5,300.00. The analysts cited a potential modest beat and bracket for the fourth quarter, supported by industry data and channel checks that suggest Booking Holdings could surpass Wall Street’s expectations for year-over-year growth in bookings and room nights. The company, currently trading near its 52-week high with a market capitalization of $169.87B, is showing impressive gross profit margins of 84.67%. According to InvestingPro analysis, the stock appears to be slightly overvalued at current levels, though it maintains a "GREAT" overall financial health score.

According to Evercore ISI, the performance of Airbnb (ABNB) and Expedia (NASDAQ:EXPE), which reported year-over-year bookings growth of 14% and 13% respectively, and room night growth of 12% for both, indicates there could be significant upside to the consensus estimates for Booking Holdings. The current estimates for the company’s fourth-quarter year-over-year growth stand at 9% for bookings and 8% for room nights. With Booking Holdings’ strong revenue growth of 11.74% over the last twelve months and robust EPS of $145.91, InvestingPro subscribers can access 12 additional key tips about the company’s performance and valuation metrics.

The firm also believes that the Street’s fourth-quarter revenue estimate, which anticipates an 8% year-over-year increase and a 35% quarter-over-quarter decrease, could be exceeded. Historically, Booking Holdings’ fourth-quarter quarter-over-quarter revenue percentage change ranges between -33% to -35%. Additionally, the projected EBITDA margin of 32% is seen as beatable by Evercore ISI.

Evercore ISI’s positive outlook is further reinforced by robust travel demand observed in the fourth quarter. Their colleagues on the Evercore ISI Airlines Research Team have reported solid data from their proprietary Evercore ISI Airlines Survey, which recorded a consistent 61.3 as holiday travel demand remained strong. Other key industry data, such as TSA Throughput and Hotel Occupancy, also point to a healthy demand environment, all of which contribute to the anticipation of a strong fourth-quarter performance for Booking Holdings.

In other recent news, Booking Holdings has been in the limelight due to several key developments. TD Cowen maintained a positive stance on the company, reiterating a Buy rating and a price target of $6,300. The firm’s analyst, Kevin Kopelman, highlighted Booking Holdings’ unique position as the only major online travel agency showing year-over-year advertising cost leverage.

Priceline, a part of Booking Holdings, appointed Sejal Amin as its Chief Technology Officer. Amin will oversee product engineering, infrastructure, data, and technology operations, aiming to propel Priceline’s adoption and integration of generative and agentive AI technologies.

Truist Securities adjusted its outlook on Booking Holdings, increasing the price target slightly from $4,700.00 to $4,720.00, while retaining its Hold rating. Analyst Greg Miller highlighted the company’s strong market position in Europe and the Asia-Pacific region as key factors influencing the decision.

On the other hand, Cantor Fitzgerald revised its price target for Booking Holdings, lowering it to $4,900 from the previous $5,100, while maintaining a neutral stance. The adjustment comes as the firm anticipates changes in consumer behavior in an "Agentcentric" world.

Lastly, Booking Holdings’ shares saw a boost following a federal court decision that overturned a previous verdict holding the company liable for violating a computer fraud law in a case against Ryanair DAC. These are just some of the recent developments surrounding Booking Holdings.

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