Booking Holdings (BKNG – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Kevin Kopelman from TD Cowen maintained a Buy rating on the stock and has a $4,000.00 price target.
Kevin Kopelman has given his Buy rating due to a combination of factors that suggest a strong outlook for Booking Holdings. Despite some increased uncertainty after the company discontinued its practice of providing detailed quarterly growth metrics, Kopelman acknowledges the firm’s history of conservative guidance and a pattern of outperforming its projections. The company’s performance in the fourth quarter, with nights booked increasing by 9%—being at the high end of the guidance—and the guidance for the first quarter nights increase of 4-6%, closely align with expectations. Moreover, the full-year 2024 estimated growth is anticipated to be around 6%.
Furthermore, Kopelman sees potential for gross booking value (GBV) upside driven by strong average daily rates (ADRs). He also notes the company’s financial strategies, including repurchasing over $10 billion in shares during 2023 and initiating a dividend, as positive signs for shareholder value. While there is a slight downward adjustment in the forecasted growth rates for 2024 and 2025, the expected slight increase in EBITDA margins due to advertising leverage outweighing overhead costs supports the positive outlook. All these factors contribute to Kopelman’s Buy rating, with a price target of $4000 per share.
Kopelman covers the Consumer Cyclical sector, focusing on stocks such as Expedia, Booking Holdings, and Airbnb. According to TipRanks, Kopelman has an average return of 4.0% and a 56.78% success rate on recommended stocks.
In another report released today, Evercore ISI also maintained a Buy rating on the stock with a $3,800.00 price target.
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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
