Booking Holdings (BKNG) recently delivered strong quarterly results that showed it is successfully growing its market share in the alternative lodging market while cutting costs. According to five-star Wedbush analyst Scott Devitt, global travel demand came in healthier than expected, and Booking remains the most well-positioned online travel agency due to its global reach, financial strength, and steady free cash flow. As a result, Devitt upgraded the stock to Buy with a $6,000 price target.
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It is also worth mentioning that Booking beat expectations across major metrics in Q3 and gave solid Q4 guidance. Although the stock rose after the results, it remains about 10% below its August highs. Shares are currently trading at around 17.6 times Wedbush’s projected 2027 GAAP EPS, which is near the lower end of its two-year historical range. This valuation further supports Devitt’s bullish outlook on the stock.
Looking forward, Devitt raised his growth forecasts for Booking’s business. He now expects gross bookings to grow by 11.5% year-over-year, which is about 100 basis points higher than his earlier estimate. Room night growth is also expected to rise by nearly 90 basis points to 7.2% year-over-year. Additionally, he sees the company achieving $9.8 billion in adjusted EBITDA, with margins expanding by 180 basis points to 36.8%.
Is BKNG Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BKNG stock based on 17 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average BKNG price target of $6,169.08 per share implies 19.7% upside potential.
