Goldman Sachs is out with its near-term forex outlook
Tuesday, analysts at BTIG increased their price target on Booking Holdings (NASDAQ:BKNG) shares to $6,250 from $5,500, while reiterating a Buy rating on the stock. The company, which boasts a perfect Piotroski Score of 9 according to InvestingPro data, has attracted positive attention from analysts, with 11 revising their earnings estimates upward for the upcoming period. The firm’s analyst cited several factors for the optimistic outlook, including a steady increase in reservation volumes and an expectation for the company to exceed its second-quarter guidance.
The revision in the price target comes after Booking Holdings’ stock recently surpassed the initial target and reached a new all-time high. With a current market capitalization of $180.25 billion and trading near its 52-week high, BTIG’s decision to maintain a Buy rating reflects their confidence in the stock’s continued performance. The upgrade in April was a response to a market dislocation amid tariff concerns and macroeconomic worries, but the market sentiment has since stabilized, with large-cap Internet growth stocks, including Booking Holdings, returning to peak levels.
BTIG’s analysis shows that reservation volumes in June have been growing at the fastest rate since late the previous year. This trend suggests that Booking Holdings is on track to surpass the guidance provided for the second quarter. The company has demonstrated strong operational efficiency with an impressive gross profit margin of 86.63% and revenue growth of 9.47% over the last twelve months. Consequently, BTIG has adjusted their room night growth estimates upwards, with a 2 percentage point increase for the second quarter and a 1 percentage point increase for 2025. For deeper insights into Booking Holdings’ growth metrics and financial health, check out the comprehensive analysis available on InvestingPro.
The upward revision in growth estimates has also led to an increase in the earnings per share (EPS) forecast for Booking Holdings, with BTIG now projecting an EPS of $220 for the current year and $252 for 2026. The company’s current P/E ratio stands at 34.05, reflecting the market’s high growth expectations. These figures place BTIG’s estimates approximately 2% above the consensus estimates for the company.
BTIG’s new price target of $6,250 is based on a 2026 price-to-earnings (PE) ratio of 25 times, which aligns Booking Holdings’ valuation with the average of large-cap Internet growth companies. The firm’s analysis and the raised price target reflect a positive outlook for Booking Holdings’ financial performance and stock valuation in the coming years.
In other recent news, Booking Holdings has experienced a series of analyst upgrades and revised price targets following its latest financial results and strategic advancements. JPMorgan (NYSE:JPM) increased its price target for Booking Holdings to $6,000, maintaining an Overweight rating, citing the company’s strong position in the online travel sector and its potential for global market share growth. Tigress Financial Partners also raised its price target to $6,100, upholding a Strong Buy rating, and highlighted the company’s advancements in artificial intelligence as key to enhancing sales growth and operational efficiency. UBS analyst Stephen Ju boosted the price target to $5,750, reaffirming a Buy rating and noting Booking’s strategic expansion beyond its core lodging business. Benchmark analyst Daniel Kurnos adjusted the price target to $6,000, following a solid earnings report that exceeded profitability expectations. Meanwhile, Cantor Fitzgerald raised the price target to $4,440, maintaining a Neutral rating, and noted Booking Holdings’ first-quarter results surpassed Wall Street’s gross bookings and EBITDA estimates. These developments reflect a general confidence among analysts in Booking Holdings’ ability to navigate economic uncertainties and leverage its diversified offerings for continued growth.
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