Booking Holdings Maintains Hold Rating Amid Consistent Performance and Market Alignment

Wells Fargo analyst Ken Gawrelski has maintained their neutral stance on BKNG stock, giving a Hold rating on March 22.

Ken Gawrelski has given his Hold rating due to a combination of factors surrounding Booking Holdings’ performance and market expectations. The anticipated first-quarter results are not expected to serve as a significant catalyst for the stock, as room nights are predicted to be just above the company’s conservative guide. While January’s performance was strong, February and March have shown a consistent trend without the expected deceleration despite certain timing issues related to Lunar New Year and Easter. This led to a slight increase in expected room nights growth to 7% year over year.

Furthermore, Gawrelski projects that the second-quarter guidance for room nights will likely align with current market consensus, and he does not foresee any changes to the full-year outlook. Other aspects to consider include the current booking window, take-rate, and geographical growth within the United States market. Booking Holdings’ rollout of generative AI could also influence future performance. Looking beyond the immediate earnings, there are opportunities and risks related to Digital Marketing Agreement (DMA) dynamics that could become more pivotal to the company’s equity narrative. Despite these considerations and a modest adjustment to forecasts for consistent traffic trends and foreign exchange impacts, the valuation and price target remain unchanged, supporting the Equal Weight rating.

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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.