Booking Holdings (BKNG) PT Raised to $4,285 at Tigress Financial Partners, 'We believe significant upside exists from current levels'

Tigress Financial Partners analyst Ivan Feinseth raised the price target on Booking Holdings (NASDAQ: BKNG) to $4,285.00 while maintaining a Strong Buy rating.

The analyst comments "

We reiterate our Strong Buy rating on BKNG and increase our 12-month target price to $4,285 as it continues to be well-positioned to benefit from the significant secular shift in consumer spending priorities favoring travel and entertainment, and the ongoing leverage of generative AI will drive further revenue growth. BKNG recently reported Q3 total revenues increased 21% Y/Y, 18% in constant currency, to a record $7.3 billion. Merchant revenues increased 50.92% Y/Y to $3.95 billion, agency revenues declined 2.1 % to $3.14 billion, and advertising and other revenues rose 11.6% to $261 million. Gross travel bookings increased 24% Y/Y, 21% in constant currency, to a record $39.8 billion. Merchant gross bookings rose 53.5% to $22.27 billion, and agent gross bookings were flat at $17.54 billion. Room nights booked grew 14.9% to a record 276 million, rental car days booked rose 20% to 20 million, and airline tickets booked rose 56.6% to 9 million. Room night growth was driven by stronger travel demand across peak seasons and geographies, with growth in 2024 and the US market especially expected to continue. Air ticket bookings increased by 57%, indicating progress towards building scale in air supply. Alternative accommodations saw significant growth, focusing on increasing supply and improving product features moving forward. BKNG continues to incorporate new AI functionality for price optimization and customer search. BKNG launched its ChatGPT-driven AI planner, AI Trip Planner, enabling travelers to ask general travel-related questions and specific travel questions to support any stage of their trip-planning process. The AI integration is built upon the foundation of BKNG’s existing machine learning models that recommend destination and accommodation options to millions of travelers and is partially powered by OpenAI’s LLM (large language model) technology from OpenAI’s ChatGPT API to create a conversational experience as travelers begin or expand their trip planning process. BKNG continues to expand its travel ecosystem with recent investments in ground travel services, integrating ground travel with hotel bookings, and expanding its rental car business to include alternative forms of transportation by leveraging its technologically advanced platform to drive new opportunities through its focus on the Connected Trip. BKNG’s market-leading position, strengthened by its strong brand equity and diversified global footprint, together with its solid execution ability, technologically advanced platform, and realization of value from its complementary acquisition strategy, will continue to drive an increasing Return on Capital, growing Economic Profit, and greater shareholder value creation. BKNG also continues to enhance shareholder returns with ongoing share repurchases and announced an additional $20 billion share repurchase authorization in February. We believe significant upside exists from current levels, and our 12-month target price of $4,285 represents a potential return of over 20% from current levels."

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