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On Wednesday, Goldman Sachs analyst Eric Sheridan updated the firm’s outlook on Booking Holdings (NASDAQ:BKNG), raising the price target to $4,680 from $4,520, while maintaining a Neutral rating on the stock. With the stock currently trading at $4,909.23 and eight analysts revising their earnings estimates upward, according to InvestingPro data, market sentiment remains strong. The adjustment follows Booking Holdings’ first-quarter earnings report for 2025, in which the company’s management highlighted several key points.
The management of Booking Holdings pointed out a stable travel environment in the first quarter, with solid bookings and overnight stays. This stability is reflected in the company’s impressive 86.63% gross profit margin and 9.47% year-over-year revenue growth, as reported by InvestingPro. They also provided forward-looking commentary, although noting emerging changes in cross-border travel and booking habits based on budget and inventory quality. The company is intent on leveraging fixed costs to improve operating performance and continues to shift marketing spend towards direct traffic and social media channels, optimizing traditional paid performance channels.
Further, Booking Holdings is concentrating on enhancing AI integration to drive personalization and customization for users on their properties and with external partners. They expressed readiness to make strategic investments and adjust focus if the macroeconomic environment softens, emphasizing their historical ability to capture market share and strengthen their competitive position during market demand shifts.
Sheridan anticipates that discussions about Booking Holdings and its stock will continue to revolve around changes in the end demand environment and competitive intensity in the upcoming quarters. The revised 12-month price target of $4,680 reflects these considerations. According to InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, though the company maintains a "GREAT" overall financial health score. For deeper insights into Booking Holdings’ valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Booking Holdings reported impressive first-quarter 2025 earnings, surpassing Wall Street expectations with an adjusted EPS of $24.81, well above the forecast of $17.45. The company achieved a revenue of $4.76 billion, exceeding the anticipated $4.59 billion. Despite these strong financial results, the stock experienced a decline in aftermarket trading. JMP analysts responded by raising their price target for Booking Holdings to $5,700, maintaining a Market Outperform rating, following the company’s robust earnings and promising second-quarter guidance. The analysts highlighted Booking Holdings’ strong geographic diversification and market position, especially in the volatile macroeconomic landscape. The company noted stable global travel demand, but pointed out softer trends within the U.S. due to decreased inbound travel and increased cost-consciousness among consumers. Booking Holdings plans to invest in AI technologies and expand its alternative accommodations offerings, aiming to enhance its competitive edge. The company also reported significant growth in alternative accommodations and flight bookings, contributing to its overall performance.
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