Summary

  • D.A. Davidson raised its rating on online travel agency Bookings Holdings from ‘neutral’ to ‘buy’.
  • The mean recommendation rating on BKNG is 2.3, with 21 analysts rating BKNG ‘buy’ or higher.
  • In Q3 2023, Booking Holdings reported an adjusted profit of US$72.32 per share, surpassing the average analyst estimate of US$67.61.

Booking Holdings Inc.’s shares reached US$3,002.38 following an upgrade from 'neutral' to 'buy' by D.A. Davidson analysts. The stock price rose by 5% on November 6, 2023, marking the most significant price increase since early August this year.

Led by Tom White, D.A. Davidson analysts took the decision to upgrade based on the recent BKNG stock retracement. Alongside that, the company's strong Q3 performance and optimistic 2024 revenue projection also led to the upgrade.  

As per EODHD/Others data, BKNG has a mean recommendation rating of 2.3 on five. Here, one represents a ‘strong buy’ rating and five depicts a ‘strong sell’ rating.

BKNG Price Chart; Source: EODHD/Others

Meanwhile, the consensus mean price target on BKNG is US$3,408.92, which is 14.72% higher than Monday’s closing price. On Monday, BKNG closed at US$2,971.43, rising almost 4% on an intraday basis. On a YTD basis, BKNH closed 47% higher on Monday.

D.A. Davidson expects 15% revenue growth for BKNG

For Q3 2023, total revenues amounted to USD7.3 billion, marking a 21% rise compared to the same quarter in the previous year.

Net income reached USD2.5 billion, indicating a 51% increase from the same quarter previous year.. Notably, Booking Holdings reported an adjusted profit of US$72.32 per share for Q3, surpassing the average analyst estimate of US$67.61.

Additionally, BKNG anticipates a 15% growth in Q4 revenue as a percentage of gross bookings. D.A. Davidson believes that BKNG fulfills 10 out of the 12 criteria necessary to be considered a top-tier player in their assessment.

These criteria include possessing a durable competitive advantage, leading margins in its category, robust ROIC performance, and a focus on shareholder-oriented management.

Brokers review ratings on BKNG

EODHD/Others data suggests that many brokers reviewed their ratings on BKNG following the release of its Q3 2023 financial data on November 2, 2023. Brokers BTIG and Cleveland retained their ‘neutral’ ratings on BKNG.

Evercore ISI upped the stock to an ‘outperform’ rating, while giving the stock a price target of US$3,900. Oppenheimer & Co also raised tis rating on BKNG to ‘outperform’ on November 3, 2023, while maintaining a price target of US$ 3,450.

Meanwhile, Susquehanna Financial Group maintained a ‘positive’ rating on the stock on November 6, 2023. Similarly, TD Cowen also kept its ‘outperform’ rating intact on BKNG.

Broker Wedblush retained an ‘outperform’ rating. Alternatively, Wells Fargo kept its ‘underweight’ rating on BKNG.

Image Source: ©2023 Kalkine®; Data Source: Company Reports

A total of 32 analysts have covered the stock, among which 5 have given BKNG a ‘strong buy’ rating. A majority of 16 analysts have given the stock a ‘buy’ rating, while 9 have given it a ‘hold’ rating and one analyst believes the stock is ‘sell’ and one believes it to be a ‘strong sell’.