Booking Holdings (BKNG – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst on November 1. Analyst Amanda Tan from DBS downgraded the rating on the stock to a Hold and gave it a $4,000.00 price target.
Amanda Tan’s rating is based on several considerations, primarily the anticipated deceleration in Booking Holdings’ growth rates. Despite the company’s strong position as a market leader in the online travel industry and its impressive performance with higher revenues compared to peers, Amanda projects a slowdown in growth as the travel demand normalizes. This normalization is expected to cap the upside potential for the company’s stock, factoring in that the recovery story in travel has largely been realized.
Additionally, Amanda notes that while Booking Holdings enjoys higher profitability margins compared to competitors like Expedia, its current valuation already reflects this advantage, limiting further growth potential. Compounding these factors is the macroeconomic environment, with potential recessions and uncertainties possibly impacting consumer spending on travel, which poses a risk to future bookings and rates. Furthermore, increasing competition from both traditional and new players like Google intensifies the market pressure, leading Amanda to a Hold recommendation with a target price of $4000.
In another report released on November 1, Morgan Stanley also maintained a Hold rating on the stock with a $4,600.00 price target.
Based on the recent corporate insider activity of 49 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.
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Booking Holdings (BKNG) Company Description:
Founded in 1997 and based in Connecticut, Booking Holdings, Inc. provides an online platform for making travel and restaurant reservations. The company offers its services through the following brands: Booking.com, KAYAK, Priceline, Agoda, Rentalcars.com, and OpenTable.
Read More on BKNG:
- Booking Holdings price target raised to $5,250 from $3,900 at RBC Capital
- Booking Holdings price target raised to $5,200 from $4,900 at Deutsche Bank
- Booking Holdings price target raised to $4,600 from $4,200 at Morgan Stanley
- Booking Holdings price target raised to $5,500 from $4,100 at Susquehanna
- Booking Holdings price target raised to $5,400 from $5,000 at JMP Securities
