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On Wednesday, UBS analyst Stephen Ju increased the price target on Booking Holdings stock (NASDAQ:BKNG), boosting it from $5,557.00 to $5,750.00 and reaffirmed a Buy rating. This aligns with broader analyst sentiment, as InvestingPro data shows 8 analysts have recently revised their earnings estimates upward, with price targets ranging from $4,411 to $6,345. Ju highlighted Booking’s diversified global presence and its ability to maintain stable demand patterns heading into the second quarter of 2025. The analyst pointed out the company’s strategic expansion beyond its core lodging business, which has resulted in a significant increase in attractions volume year over year.
Booking Holdings has reported a 9% growth in alternative accommodations listings across all regions and a 12% increase in room nights for the same category. Additionally, the company experienced a 45% surge in air ticket sales. The company’s operational excellence is reflected in its impressive 86.6% gross profit margin and strong return on assets of 19.8%, according to InvestingPro data. In the face of an uncertain economic environment, Booking has provided broader financial guidance for the fiscal year. The company now expects gross bookings and revenue to see mid to high single-digit growth and low teens growth for adjusted earnings per share (EPS), compared to the previous forecast of at least 8% growth in gross bookings and revenue, and a 15% increase in adjusted EPS.
The analyst’s optimism is further supported by the updated financial projections for Booking Holdings. UBS has raised its gross bookings estimates for the years 2025 through 2027 by approximately 1% each year, with revenue projections increasing by 3%, and GAAP EPS estimates going up by 2% for 2025 and around 5% for both 2026 and 2027. These adjustments are based on maintaining a 22x price-to-earnings (P/E) multiple, which underpins the revised price target. According to InvestingPro, the company currently trades at a P/E ratio of 28x and shows strong financial health with an Altman Z-Score of 7.47, indicating robust financial stability. Discover 10 more exclusive ProTips and comprehensive financial analysis in the Pro Research Report, available to InvestingPro subscribers. Ju’s commentary underscores Booking’s ability to leverage its market position and diverse offerings to potentially enhance customer lifetime value and drive future growth.
In other recent news, Booking Holdings has reported strong first-quarter results, surpassing revenue and adjusted EBITDA expectations. The company’s second-quarter guidance also exceeded consensus estimates, although the top-line guidance was roughly in line with predictions when excluding a foreign exchange benefit. Analysts have responded to these results with several price target adjustments. Benchmark raised its target to $6,000, maintaining a Buy rating, while Cantor Fitzgerald increased it to $4,440 with a Neutral rating. JPMorgan adjusted its target to $5,360, maintaining an Overweight rating, and Goldman Sachs set a new target of $4,680, also with a Neutral rating. JMP analysts raised their target to $5,700, reaffirming a Market Outperform rating. These adjustments reflect the company’s solid performance and strategic positioning amid macroeconomic uncertainties. Booking Holdings has noted stable global travel demand, though softer trends are emerging in the U.S. due to decreased inbound travel and increased cost-consciousness. The company is leveraging its geographically diversified platform and strategic investments in AI and marketing to maintain its competitive edge.
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