UBS maintains Buy on Booking Holdings with $5960 target

On Friday, UBS analyst Stephen Ju affirmed a Buy rating on Booking Holdings (NASDAQ:BKNG) stock, maintaining a price target of $5,960.00. With a current market capitalization of $162.4 billion and trading near its 52-week high of $5,337, the company has demonstrated strong momentum, gaining over 41% in the past year. Ju’s endorsement follows a series of meetings with Booking Holdings’ top executives, including CEO Glenn Fogel and CFO Ewout Steenbergen, as well as their Investor Relations team.

During these discussions, Ju gained insight into the company’s array of current products, such as the Connected Trip platform, alternative accommodations, and their payments/fintech solutions. The analyst highlighted the company’s Transformation Program, designed to cut costs and liberate capital for aggressive product development, as a strategic move bolstering his confidence in the firm’s future. This confidence is supported by the company’s impressive gross profit margin of 85.87% and robust revenue growth of 11.11% over the last twelve months.

The Transformation Program has positioned Booking Holdings to potentially achieve what Ju refers to as the "8, 8, 15" growth formula. This formula anticipates long-term growth rates for Gross Bookings, Revenue, and Adjusted Earnings Per Share (Adj. EPS).

Ju’s positive outlook on Booking Holdings is predicated on the company’s comprehensive approach to its offerings and its strategic financial management. The company’s efforts to innovate within the travel industry, including expanding its product portfolio and optimizing its financial operations, are central to this perspective.

Booking Holdings, through its various initiatives and product offerings, is working to maintain its competitive edge in the travel sector. The UBS analyst’s reiterated Buy rating and substantial price target reflect a strong belief in the company’s growth trajectory and strategic initiatives.

In other recent news, Booking Holdings reported a strong fourth-quarter performance, exceeding both consensus estimates and its own guidance, with a notable 13% increase in room night growth. This robust performance has led several firms to adjust their outlooks on the company. DA Davidson raised its price target to $5,800, maintaining a Buy rating, while Susquehanna increased its target to $6,000, citing an improved operational outlook. UBS also raised its price target to $5,960, reaffirming a Buy rating, and highlighted the company’s market share gains and strategic initiatives like the Connected Trip and Genius Loyalty program.

Conversely, Bernstein maintained a Market Perform rating with a $5,200 target, noting a significant drop in free cash flow and conservative forward guidance. The firm expressed concerns about potential challenges from artificial intelligence, which could impact Booking Holdings’ business model. Meanwhile, Citizens JMP maintained a Market Outperform rating with a $6,100 target, emphasizing the company’s effective use of social marketing and its ability to gain market share.

Overall, Booking Holdings’ recent developments reflect a mix of strong past performance and cautious future guidance, with analysts offering varied perspectives on the company’s growth potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.