Tuesday, Seaport Global Securities initiated coverage on Booking Holdings (NASDAQ:BKNG) with a Buy rating, accompanied by a price target set at $4,380. The firm's analysis suggests confidence in the company's performance, underlining its status as a leading force in the global online accommodations sector, particularly strong in Europe and Asia.
The firm's price target is based on a projected 21 times the non-GAAP earnings per share (EPS) expected for the year 2025. Seaport Global Securities' stance is buoyed by several factors, including Booking Holdings' market leadership and anticipated revenue growth. The firm expects the company to experience high single-digit long-term bookings and revenue growth, propelled by the overall expansion of global travel, increased online market share, the growth of alternative accommodations, and the success of the company's Connected Trip offerings, which include package deals.
Additional reasons for the optimistic outlook include expectations for continued growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) margins. Seaport Global Securities predicts this expansion will be driven by a rise in organic traffic to Booking Holdings' websites and mobile applications, indicating a healthy consumer base and efficient marketing strategies.
The firm's commentary points to a robust business model for Booking Holdings, as it taps into the burgeoning travel industry and leverages its online presence to capture a larger share of the market. The analyst's remarks underscore the potential for Booking Holdings to further solidify its position in the sector through strategic initiatives and capitalization on industry growth trends.
Seaport Global Securities' coverage initiation and positive forecast for Booking Holdings reflect an expectation of sustained profitability and growth for the company as it navigates the competitive landscape of online travel and accommodations. The price target of $4,380 reflects the firm's confidence in the company's future financial performance and strategic direction.
InvestingPro Insights
Amidst the positive outlook from Seaport Global Securities on Booking Holdings (NASDAQ:BKNG), the real-time data and insights from InvestingPro further support the bullish sentiment on the company's prospects. With a robust market capitalization of $129.68 billion and a healthy P/E ratio of 26.07, which adjusts to an even more attractive 25.47 for the last twelve months as of Q3 2023, Booking Holdings demonstrates a strong financial position in the market.
InvestingPro Tips highlight that the company's management has been actively engaged in share buybacks, reflecting confidence in the company's value and future performance. Additionally, analysts anticipate sales growth in the current year, which aligns with Seaport Global Securities' expectations for revenue expansion driven by the global travel industry's growth.
Moreover, Booking Holdings boasts an impressive gross profit margin of 86.14% for the last twelve months as of Q3 2023, showcasing its efficiency and profitability in the Hotels, Restaurants & Leisure industry. The company's strategic position is further solidified by its status as a prominent player in the sector, with a strong return over the last year, as indicated by a 50.97% price total return.
For readers seeking more in-depth analysis and additional insights, InvestingPro offers a suite of tips, with 14 more tips available that could provide a more nuanced understanding of Booking Holdings' investment potential. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore these insights at https://www.investing.com/pro/BKNG.
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