Booking Hlds (BKNG) Stock Forecast & Price Target

Booking Holdings has demonstrated strong financial performance with an adjusted EPS growth of over 20%, surpassing previous estimates and reflecting a positive trajectory in profitability. The company has also raised its adjusted EBITDA margins by 180 basis points year-over-year, indicating improved operational efficiency and revenue generation across its diverse booking platforms. Additionally, significant growth in room nights and merchant revenues, particularly in the U.S. and Europe, positions Booking Holdings favorably within the online travel agency market, supported by steady demand in leisure travel and favorable external factors such as air travel and foreign exchange rates.

The financial analyst identifies several fundamental reasons for a negative outlook on Booking Holdings's stock, primarily related to increased risks from artificial intelligence and ongoing regulatory pressures. The company is expanding into lower-margin categories such as air travel, which may adversely affect its overall take-rate and profit margins, while the potential for the Digital Services Act and Digital Markets Act in the EU could impose operational restrictions. Additionally, Booking's performance remains vulnerable to economic cycles that could lead to demand shocks, particularly if macroeconomic conditions deteriorate.