After Morgan Stanley and SunTrust Robinson gave Booking Holdings Inc (NASDAQ: BKNG) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Jed Kelly maintained a Buy rating on Booking Holdings Inc yesterday and set a price target of $2275. The company’s shares closed yesterday at $1942.39.
Kelly observed:
“We reduce our BKNG PT to $2,275 from $2,500. The company reported a significant 2Q EPS beat on higher advertising ROIs (revenue +20% y/y vs. flat advertising growth), with direct channel accounting for 50% of nights booked. However, market optimization priorities are causing management to guide for another quarter of decelerating room-nights, where high-end (+9% y/y) is 3%/4% below the Street estimate. While lower room-night growth will weigh on sentiment and likely cause shares to be range-bound near term, we view top-line deceleration trends as more self-inflicted vs. share losses, and see the current operating environment as somewhat transitory and under-appreciating BKNG’s ability to drive long-term accommodation share gains and high-teens FCF growth (+50% y/y in 1H). In addition, solid China exposure presents a compelling growth opportunity. Maintain Outperform.”
Kelly has an average return of 19.0% when recommending Booking Holdings Inc.
According to TipRanks.com, Kelly is ranked #1136 out of 4850 analysts.
Currently, the analyst consensus on Booking Holdings Inc is a Strong Buy with an average price target of $2270, which is a 16.9% upside from current levels. In a report issued on August 6, SunTrust Robinson also assigned a Buy rating to the stock with a $2300 price target.
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Booking Holdings Inc’s market cap is currently $93.72B and has a P/E ratio of 39.04. The company has a Price to Book ratio of 8.81.
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Booking Holdings, Inc. is an online travel company, which provides travel and related services. It offers accommodation reservations including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties. The company provides services through Booking.com, priceline.com, agoda.com, KAYAK, rentalcars.com and OpenTable brands.
