Booking Holdings, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Justin Post from Bank of America Securities reiterated a Hold rating on the stock and has a $5,850.00 price target.
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Justin Post has given his Hold rating due to a combination of factors influencing Booking Holdings’ performance. The company reported a strong second quarter with better-than-expected growth in booked nights and EBITDA margins, indicating solid execution and medium-term growth potential. However, the outlook for the third quarter was slightly below market expectations, with room nights and revenue growth projections not meeting Street estimates, although the fourth quarter outlook appears stronger.
Despite the positive execution and growth prospects, the stock is currently trading at a higher valuation compared to its historical average, which raises concerns about its current price levels. Additionally, while Booking Holdings has shown strong performance, there is a preference for greater exposure to the US market, where potential travel rebounds could provide more upside. These factors, along with risks such as macroeconomic surprises and currency fluctuations, contribute to the Hold rating, reflecting a balanced view of the company’s prospects and current market conditions.
In another report released today, Wedbush also downgraded the stock to a Hold with a $5,900.00 price target.
Based on the recent corporate insider activity of 34 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.