- Wednesday, October 16, 2024
Travel demand may be cooling, but Booking Holdings remains a strong buy according to Seaport Research Partners analyst Aaron Kessler. Kessler's recommendation comes with a target price of $4,380, signaling an 18% increase from the current trading levels.
Financial Performance
Despite the challenges in the travel industry, shares of Booking Holdings are currently trading at $3,716.84, showing a year-to-date increase of 4.8%. In comparison, the S&P 500 has seen a 4.9% growth in 2024. Notably, Booking Holdings outperformed the market in 2023 with a 76% rise compared to the S&P 500's 24% gain.
Industry Trends
With the easing of pandemic restrictions paving the way for increased travel demand, key players like Expedia and Airbnb have hinted at a possible slowdown in growth rates for 2024. However, Booking Holdings' foothold in the online accommodation reservations market, particularly in Europe and Asia, sets it apart. The company's unique offering of a 'connected trip' experience, allowing customers to book all aspects of their travel seamlessly, adds to its appeal.
Growth Outlook
Kessler projects Booking Holdings to achieve a 10% and 9% growth in bookings for 2024 and 2025, respectively, aligning with FactSet's estimates. In 2023, the company saw a significant 24% growth in bookings. As Booking Holdings prepares to announce its fourth-quarter and full-year 2023 results, investors are keen on its performance in the upcoming quarters.
In conclusion, despite facing tougher comparisons from previous years, Booking Holdings' strong fundamentals and market leadership position it as a promising investment opportunity in the evolving travel landscape.
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