Booking Holdings Inc. (BKNG:NSD) Analysts rate as Strong Buy, $2675 target

STA Research
by: STA Research
Booking Holdings Inc.

Based on the Booking Holdings stock forecast from 22 analysts, the average analyst BKNG stock price target is USD 2,674.31 over the next 12 months. Booking Holdings Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own Booking Holdings stock forecast is Slightly Bullish, which is based on 9 positive signals and 5 negative signals. At the last closing, Booking Holdings stock price was USD 1,966.48Booking Holdings stock price has changed by +88.90% over the past week, +198.50% over the past month and -5.71% over the last year.

Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. The company operates Booking.com, which offers online accommodation reservations; Rentalcars.com that provides online rental car reservation services; Priceline, which offer online travel reservation services, and consumers hotel, flight, and rental car reservation services, as well as vacation packages, cruises, and hotel distribution services. Further, it offers travel-related insurance products, and restaurant management services to consumers, travel service providers, and restaurants. The company was formerly known as The Priceline Group Inc. and changed its name to Booking Holdings Inc. in February 2018. The company was founded in 1997 and is headquartered in Norwalk, Connecticut.

 

What we like:

High market capitalization:

Booking Holdings stock of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility:

The annual returns for Booking Holdings stock have been stable and consistent as compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity:

Booking Holdings stock has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

Booking Holdings stock has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

Booking Holdings stock has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

BKNG stock price has shown positive total cash flow in the most recent four quarters.

Positive free cash flow:

BKNG stock price has shown positive total free cash flow in the most recent four quarters.

Superior Revenue Growth:

Booking Holdings stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio:

Booking Holdings stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Overpriced compared to earnings:

BKNG stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

BKNG stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

BKNG stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the BKNG stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

BKNG stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

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