Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Seaport Global bullish on Booking Holdings stock with buy rating, $4,380 price target

Published 20/02/2024, 13:32
Updated 20/02/2024, 13:32
©  Reuters

Tuesday, Seaport Global Securities initiated coverage on Booking Holdings (NASDAQ:BKNG) with a Buy rating, accompanied by a price target set at $4,380. The firm's analysis suggests confidence in the company's performance, underlining its status as a leading force in the global online accommodations sector, particularly strong in Europe and Asia.

The firm's price target is based on a projected 21 times the non-GAAP earnings per share (EPS) expected for the year 2025. Seaport Global Securities' stance is buoyed by several factors, including Booking Holdings' market leadership and anticipated revenue growth. The firm expects the company to experience high single-digit long-term bookings and revenue growth, propelled by the overall expansion of global travel, increased online market share, the growth of alternative accommodations, and the success of the company's Connected Trip offerings, which include package deals.

Additional reasons for the optimistic outlook include expectations for continued growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) margins. Seaport Global Securities predicts this expansion will be driven by a rise in organic traffic to Booking Holdings' websites and mobile applications, indicating a healthy consumer base and efficient marketing strategies.

The firm's commentary points to a robust business model for Booking Holdings, as it taps into the burgeoning travel industry and leverages its online presence to capture a larger share of the market. The analyst's remarks underscore the potential for Booking Holdings to further solidify its position in the sector through strategic initiatives and capitalization on industry growth trends.

Seaport Global Securities' coverage initiation and positive forecast for Booking Holdings reflect an expectation of sustained profitability and growth for the company as it navigates the competitive landscape of online travel and accommodations. The price target of $4,380 reflects the firm's confidence in the company's future financial performance and strategic direction.

InvestingPro Insights

Amidst the positive outlook from Seaport Global Securities on Booking Holdings (NASDAQ:BKNG), the real-time data and insights from InvestingPro further support the bullish sentiment on the company's prospects. With a robust market capitalization of $129.68 billion and a healthy P/E ratio of 26.07, which adjusts to an even more attractive 25.47 for the last twelve months as of Q3 2023, Booking Holdings demonstrates a strong financial position in the market.

InvestingPro Tips highlight that the company's management has been actively engaged in share buybacks, reflecting confidence in the company's value and future performance. Additionally, analysts anticipate sales growth in the current year, which aligns with Seaport Global Securities' expectations for revenue expansion driven by the global travel industry's growth.

Moreover, Booking Holdings boasts an impressive gross profit margin of 86.14% for the last twelve months as of Q3 2023, showcasing its efficiency and profitability in the Hotels, Restaurants & Leisure industry. The company's strategic position is further solidified by its status as a prominent player in the sector, with a strong return over the last year, as indicated by a 50.97% price total return.

For readers seeking more in-depth analysis and additional insights, InvestingPro offers a suite of tips, with 14 more tips available that could provide a more nuanced understanding of Booking Holdings' investment potential. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore these insights at https://www.investing.com/pro/BKNG.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.