On Monday, an analyst at Jefferies adjusted the price target for Booking Holdings (NASDAQ:BKNG) shares, reducing it to $4,350 from the previous $4,650. The firm continues to recommend a Buy rating on the stock. This change comes after a thorough review of the company's second-quarter results and forward-looking projections.
The analyst's updated model takes into account a slight downturn in the 2025 Revenue forecast, which has been lowered by 2%. This revision stems from decreased expectations for both Room Nights and Average Daily Rates (ADRs) across the company's lodging and flight services. The revised revenue outlook consequently has led to a reduction in the EBITDA estimate by 3%, from $8,949 million to $8,725 million.
The second quarter of 2024 presented its challenges for Booking Holdings, as described in the analyst's recap. Despite these hurdles, the analyst's commentary suggests confidence in the company's strategic approach, stating that the "Playbook Remains Intact." The firm's stance on Booking Holdings remains positive, encouraging investors to maintain their Buy position.
The price target adjustment reflects the latest financial data and expectations for Booking Holdings' performance in the coming year. The company, known for its online travel and related services, has been navigating a dynamic market environment.
Investors and market watchers will be monitoring Booking Holdings' stock performance and financial health following this updated guidance from Jefferies. The new price target of $4,350 offers insight into the firm's valuation of the company in light of recent earnings and the economic landscape.
In other recent news, Booking Holdings reported a robust performance in the second quarter, with a 7% year-over-year increase in both room nights and revenue.
The company's room nights reached 287 million, and revenue rose to $5.9 billion, surpassing market expectations. The adjusted EBITDA also saw a 7% increase, totaling $1.9 billion.
Despite a slight slowdown in room night growth, Booking Holdings' strategic initiatives, such as AI development and expanding merchant offerings, have set the stage for future expansion.
The company's third-quarter projections include room night growth of 3% to 5% and revenue growth between 2% and 4%. Adjusted EBITDA for the third quarter is expected to range between $3.25 billion and $3.35 billion.
These recent developments reflect Booking Holdings' confidence in its long-term growth prospects and competitive position within the travel industry.
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