Trading Nvidia earnings report? These are the entry and exit levels to watch for
On Friday, Goldman Sachs analyst Eric Sheridan updated the price target for Booking Holdings (NASDAQ:BKNG) to $5,020 from the previous $4,860, while maintaining a Neutral rating on the stock. The adjustment follows Booking Holdings’ fourth-quarter earnings report for 2024, where management highlighted several key points that influenced the revised target. According to InvestingPro data, the company, now valued at $166.25 billion, maintains a "GREAT" financial health score, though current trading levels suggest slight overvaluation relative to its Fair Value.
The company reported a strong performance in the fourth quarter, with significant growth in nights and bookings, surpassing expectations. The management anticipates this trend to continue into the first quarter of 2025, projecting year-over-year growth of 5-7% for both nights and gross bookings. This outlook builds on the company’s impressive 11.11% revenue growth and industry-leading gross profit margin of 85.87%. Notably, the performance in alternative accommodations was emphasized as a contributing factor to the broad-based strength seen in the last quarter.
Booking Holdings’ operational efficiency was also a highlight of the report, with adjusted EBITDA for the fourth quarter coming in substantially above Goldman Sachs estimates (GSe). The company’s forward-looking statements suggest a commitment to sustaining growth and focusing on increasing direct traffic, which is expected to improve marketing leverage, and achieving fixed cost leverage in future periods. InvestingPro analysis reveals over 10 additional key insights about BKNG’s financial performance and market position, available exclusively to subscribers.
Artificial intelligence (AI) was identified as a strategic opportunity by management, with potential benefits for enhancing customer conversion and booking performance. Additionally, AI is seen as a tool to improve customer service and drive operational expense efficiency.
Sheridan’s commentary acknowledged Booking Holdings’ ongoing dedication to returning value to shareholders. The updated 12-month price target of $5,020 reflects the firm’s recalibration of forward estimates based on the earnings report and management’s optimistic forward commentary. Despite the price target increase, Goldman Sachs chose to reiterate a Neutral rating on Booking Holdings shares.
In other recent news, Booking Holdings reported impressive fourth-quarter 2024 earnings, with an earnings per share (EPS) of $41.55, surpassing the forecasted $36.13. The company’s revenue also exceeded expectations, reaching $5.47 billion against a projected $5.19 billion. Analysts from Citi and JPMorgan have raised their price targets for Booking Holdings to $5,800 and $5,750, respectively, following the company’s strong performance. Citi maintained a Buy rating, highlighting Booking Holdings’ significant growth in room nights and gross bookings, as well as the expansion of its adjusted EBITDA margin. JPMorgan also maintained an Overweight rating, emphasizing the company’s strategic initiatives and partnerships in generative AI, which are expected to enhance operational efficiencies. Booking Holdings’ management expressed confidence in continued healthy travel demand into 2025, with expectations for high single-digit growth in the first quarter. The company also announced a $20 billion share buyback program, indicating strong capital returns to shareholders. These developments reflect a positive outlook for Booking Holdings as it continues to leverage technology and strategic partnerships to drive growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.