On Thursday, Evercore ISI updated its outlook on Booking Holdings (NASDAQ:BKNG) stock, increasing the price target to $5,300 from the previous $4,200 while maintaining an Outperform rating. The revision follows Booking Holdings' third-quarter earnings, which exceeded expectations and prompted the firm to adjust its financial projections upward.
Booking Holdings reported robust third-quarter results, leading to an upward revision in both earnings estimates and the price target. The company's performance was highlighted as a positive indicator not only for itself but also for others in the sector, such as Expedia Group (NASDAQ:EXPE) and Airbnb (NASDAQ:ABNB). The report noted Booking Holdings' ability to generate substantial free cash flow and maintain a consistent track record of execution.
The analyst at Evercore ISI emphasized the company's strong growth prospects, citing a sustainable and premium earnings per share (EPS) growth rate of 15%. The updated valuation framework, now looking forward to 2026, reflects confidence in Booking Holdings' continued success and its status as a high-quality growth asset with a reasonable price tag.
The market's reaction to Booking Holdings' third-quarter performance was immediate, with the stock price rising approximately 7% in after-market trading. This response was attributed to the company's third-quarter earnings surpassing the cautious expectations and its fourth-quarter outlook aligning with the higher end of Wall Street estimates.
In summary, Evercore ISI's revised price target for Booking Holdings is based on the company's impressive third-quarter results, its favorable growth outlook, and its solid financial position, which includes strong free cash flow generation. The firm's analysis suggests continued optimism for Booking Holdings' trajectory in the travel industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.