Booking Holdings Inc. (BKNG), an American travel technology company, has inked a deal with funds managed by CVC Capital Partners (CVC) to snap up Etraveli Group, a global flight booking provider, for €1.63 billion.
The completion of the deal awaits certain regulatory approvals. Notably, Etraveli Group will remain headquartered in Sweden and operate as an independent business under Booking Holdings, led by their current management team, the company said in a release. (See Booking Holdings stock charts on TipRanks)
Benefits of the Acquisition
Founded in 2000, Etraveli Group is focused on offering the best possible flight content through flexible tech solutions to the consumer. Therefore, the acquisition will complement Booking Holdings’ ongoing online travel and related services.
See Top Smart Score Stocks on TipRanks >>
The CEO of Booking Holdings, Glenn Fogel, said, “As international air travel rebounds from the impact of the pandemic, we look forward to building upon our existing relationship with Etraveli Group to make the travel booking experience easier and more seamless to support our partners and customers.”
On November 23, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on the stock and assigned a price target of $3,150 (34.55% upside potential).
Feinseth said, “BKNG remains well-positioned to benefit from the recovery in travel and remains one of the best ways to play the global travel recovery, the reaccelerating global travel demand growth, and the ongoing growth of online and mobile travel bookings.”
The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 11 Buys and 9 Holds. The average Booking Holdings price target of $2,854.21 implies 21.92% upside potential. Shares have gained 11.3% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Booking Holdings’ performance.
According to the tool, the website of Booking Holdings recorded a 19.04% monthly growth, year-over-year, in global visits in October. Also, year-to-date website growth, compared to year-to-date website growth in the previous year, has climbed 13.62%.
General Motors Acquires 25% Stake in Pure Watercraft; Shares Rise
Astra Enters Orbit; Shares Soar 17.2%
AWS to be Cloud Provider for Richemont