BTIG analyst Jake Fuller has maintained their neutral stance on BKNG stock, giving a Hold rating today.
Jake Fuller has given his Hold rating due to a combination of factors concerning Booking Holdings’s recent performance and future outlook. Fuller notes that Booking Holdings did not surpass its fourth-quarter expectations as it typically does, and its guidance for the first quarter and the full year was conservative, failing to meet prior expectations. Although Booking Holdings achieved its room night guidance for the fourth quarter, the future bookings and room night growth projections were lower than anticipated, suggesting a potential slowdown in the online travel agency (OTA) sector’s growth rate moving forward. This cautious outlook reflects concerns that the normalized growth rate might be slower than what was previously projected.
Furthermore, Fuller’s caution is compounded by operational complexities, including one-time expenses and an accounting change, which somewhat obscured the analysis of operating expenses. While there were certain positive aspects, such as a quarterly cash dividend and better-than-expected EBITDA/EPS, these were overshadowed by the subdued room night and bookings forecast. The report suggests a trend of deceleration post-January, and despite healthy buybacks, they fell short of expectations. Based on these insights, Fuller adjusted his estimates for the top line for the first quarter and the year, resulting in a Hold rating as he deems the stock to be fairly valued within its historical price-to-earnings range.
In another report released today, Goldman Sachs also reiterated a Hold rating on the stock with a $3,630.00 price target.
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Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BKNG in relation to earlier this year.
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Booking Holdings (BKNG) Company Description:
Founded in 1997 and based in Connecticut, Booking Holdings, Inc. provides an online platform for making travel and restaurant reservations. The company offers its services through the following brands: Booking.com, KAYAK, Priceline, Agoda, Rentalcars.com, and OpenTable.
Read More on BKNG:
- BKNG Earnings: Booking Holdings Stock Slides Despite Q4 Beat
- Booking Holdings price target raised to $3,900 from $3,500 at BofA
- Apple, Tesla downgraded: Wall Street’s top analyst calls
- Seaport positive on Booking Holdings fundamentals, starts with Buy
- Booking Holdings initiated with a Buy at Seaport Research
