Booking Holdings (BKNG) PT Raised to $3,700 at Morgan Stanley on Valuation Roll Forward
Morgan Stanley analyst Brian Nowak raised the price target on Booking Holdings (NASDAQ: BKNG) to $3,700.00 (from $3,000.00) while maintaining a Equalweight rating.
The analyst comments "BKNG 2024 Gross Booking/Revenue guide of 7%+ growth came in below us at ~10%, while EBITDA guide of growth slightly faster than revenue also below us at ~14%. Flat US Room Night growth in 4Q feeds concerns around share loss in leisure hotels and speaks to needed execution improvement in 2024. AA RN competition persists as BKNG AA nights grow 19% in 4Q (+11mn), ~700bps above ABNB, marking 5 of 7 quarters BKNG has added the same or more RNs than ABNB. Early signs point to GenAI efficiency as AI Trip Planner/Penny lower customer service contact rates while GenAI tools boost software developer productivity. '24 Rev./EBITDA fall -2%/-3%, '25 unchanged. PT to $3,700 (14X '25 EBITDA/18X '25 EPS), driven by valuation roll forward and multiples in line with LT avg."