UPDATE: Booking Holdings (BKNG) PT Raised to $2,500 but Wells Fargo Sees Limited Multiple Expansion From Here
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Wells Fargo analyst Brian Fitzgerald raised the price target on Booking Holdings (NASDAQ: BKNG) to $2,500.00 (from $2,250.00) while maintaining a Equal Weight rating. The new PT equates to 38x 2021E EV/EBITDA and 19x 2022E EV/EBITDA.
The analyst stated "Though we were encouraged by 4Q results and mgmt commentary on 1Q trends to date which appear supportive of a somewhat faster travel recovery vs. our prior outlook, we are not yet convinced that, post-pandemic, we will see structural shifts in the travel marketplace or BKNG's business justifying a (further) upward re-rating of shares. In contrast with EXPE, our preferred play in the OTA sector, BKNG's recent expense reductions appear likely to be temporary vs. structural; we also believe EXPE's (1, $157.18) current mix of business will allow margins to trend higher over time, while BKNG's entry into air/experiences, though accretive to profit dollars, will likely drive consolidated margins lower over the long term."
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