Wells Fargo analyst Ken Gawrelski maintained a Hold rating on Booking Holdings (BKNG – Research Report) yesterday and set a price target of $5,248.00.
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Ken Gawrelski has given his Hold rating due to a combination of factors surrounding Booking Holdings’ recent performance and future outlook. The company reported strong fourth-quarter results, with notable growth in nights booked, surpassing expectations. However, Gawrelski views the guidance for the upcoming quarter as somewhat conservative, despite a robust travel environment and consistent demand trends.
Although the management’s focus on AI development is seen as positive, there remains a risk of disintermediation with advances in agentic technology. Furthermore, while there is potential upside in FY25 margins due to cost efficiencies and improved marketing ROI, the overall valuation adjustments and modest revisions in estimates do not warrant a more aggressive rating at this time. Consequently, the Hold rating reflects a balanced view of the company’s current strengths and the uncertainties in its strategic positioning.
According to TipRanks, Gawrelski is a 5-star analyst with an average return of 15.4% and a 69.17% success rate. Gawrelski covers the Communication Services sector, focusing on stocks such as Meta Platforms, Alphabet Class A, and Roblox.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $5,540.00 price target.