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On Wednesday, JPMorgan analyst Doug Anmuth increased the price target for Booking Holdings (NASDAQ:BKNG) to $5,360 from $4,850, while maintaining an Overweight rating on the stock. The adjustment follows Booking Holdings’ first-quarter results, which surpassed expectations. Anmuth noted that the company’s second-quarter guidance and revised 2025 outlook were more favorable than anticipated. According to InvestingPro data, eight analysts have recently revised their earnings estimates upward, with price targets ranging from $4,411 to $6,345.
Booking Holdings has experienced stable global leisure travel demand in 2025, with no significant impact from the broader economic environment. The company has also reported healthy growth in forward bookings. Despite a decrease in the length of stay and a split economic situation in the U.S., these trends have not been observed in Europe. Moreover, while there has been a moderation in inbound travel to the U.S., this has been counterbalanced by stronger trends in other travel corridors.
The analyst pointed out that Booking Holdings’ geographically diversified platform has helped it avoid a macroeconomic slowdown at a global level. With impressive gross profit margins of 86.63% and revenue growth of 9.47% in the last twelve months, as reported by InvestingPro, the company has demonstrated strong operational efficiency. In the U.S., suppliers are increasingly using Booking Holdings’ platform to sell rooms and seats through its Genius program and opaque pricing offerings. Nonetheless, the company is cautiously factoring in macroeconomic uncertainty into its full-year outlook by broadening guidance ranges, particularly at the lower end.
Anmuth believes that the low end of the company’s guidance range accounts for a potential shallow recession in the second half of the year. In addition to macroeconomic factors, Booking Holdings has continued to perform well in strategic areas, with strong growth in alternative accommodations, direct bookings, and connected trip transactions.
Booking Holdings is also strategically engaging with artificial intelligence, partnering with leading generative AI players and developing travel-specific solutions internally. Following the recent financial results and updates, JPMorgan has slightly raised its estimates for 2025 and 2026, although they remain near the lower end of the company’s guided range.
In conclusion, the analyst’s positive outlook on Booking Holdings is based on its strong execution and potential to drive double-digit percentage earnings per share growth over multiple years. The new price target of $5,360 is rooted in an approximate 22.5 times multiple of JPMorgan’s estimated 2026 GAAP EPS for Booking Holdings. With a current P/E ratio of 28.43 and market capitalization of $160.24 billion, InvestingPro analysis suggests the stock is currently fairly valued. Investors can access comprehensive financial health metrics, valuation analysis, and 10 additional ProTips for BKNG through InvestingPro’s detailed research reports.
In other recent news, Booking Holdings reported impressive first-quarter 2025 earnings, significantly surpassing Wall Street expectations. The company achieved an adjusted EPS of $24.81, well above the forecasted $17.45, and reported revenue of $4.76 billion, exceeding the anticipated $4.59 billion. Additionally, Booking Holdings saw a 22% year-over-year increase in adjusted EPS and an 8% revenue growth, demonstrating strong financial performance. Following these results, JMP analysts raised their price target for Booking Holdings to $5,700, maintaining a Market Outperform rating, while Goldman Sachs adjusted their target to $4,680, keeping a Neutral rating. The analysts noted stable global travel demand, although softer trends were observed in the U.S. due to decreased inbound travel and increased cost-consciousness among consumers. Booking Holdings plans to leverage its strong financial position to increase investments in the U.S. market, aiming to grow its market share. The company continues to focus on AI integration to enhance customer experience and expand its alternative accommodations offerings, contributing to a robust performance in the online travel sector.
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