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Investing.com - TD Cowen has raised its price target on Booking Holdings (NASDAQ:BKNG) to $6,500 from $6,000 while maintaining a Buy rating on the stock. The travel giant, currently trading at $5,708.83 with a market capitalization of $185.77 billion, has demonstrated impressive momentum with a 44.87% return over the past year. According to InvestingPro analysis, the company maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.
The research firm cited potential margin upside for the online travel agency, despite acknowledging a challenging fourth-quarter comparison ahead. The company already boasts industry-leading gross profit margins of 86.63%, reflecting its operational efficiency.
TD Cowen noted several positive factors supporting its outlook, including recent favorable airline demand comments from companies like Ryanair, the U.S. dollar’s additional 2% decline against the euro, and a setup for a potential margin beat.
The firm also highlighted some negative factors in its analysis, including weak recent hotel data, particularly in Europe, and Booking Holdings’ implied guidance for a difficult fourth-quarter comparison.
TD Cowen continues to view Booking Holdings as "strongly positioned given cost leverage & share gains" and reaffirmed the stock as a "Top Pick" with the new price target representing approximately 25 times the company’s projected 2026 price-to-earnings ratio.
In other recent news, Booking Holdings has made significant strides in expanding its business operations. The company announced an eight-year extension of its commercial partnership with Etraveli Group, enhancing Booking.com’s global flight booking capabilities across 57 countries. This move aims to strengthen its position in the flight booking sector. Additionally, KAYAK for Business, part of Booking Holdings, has partnered with HQ to integrate ground transportation booking capabilities into its corporate travel platform. This integration allows users to book various transportation services across more than 100 countries, aiming to create a seamless travel booking experience.
On the financial front, analysts at BTIG have raised their price target for Booking Holdings to $6,250, maintaining a Buy rating. This optimistic outlook is based on a steady increase in reservation volumes and an expectation that the company will exceed its second-quarter guidance. Meanwhile, Piper Sandler has reiterated a Neutral rating for Booking Holdings, with a price target of $5,077, following discussions with company executives about their focus on cost control and revenue growth. In another development, OpenTable, also part of Booking Holdings, launched an AI-powered assistant called "Concierge" to enhance dining decisions for users, further showcasing the company’s investment in AI technology.
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