Bernstein analyst Richard Clarke maintained a Hold rating on Booking Holdings today and set a price target of $5,433.00.
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Richard Clarke’s rating is based on a combination of strong current performance and future uncertainties. Booking Holdings has demonstrated robust growth, with room nights increasing by 8% and EBITDA exceeding expectations. The company’s guidance suggests continued growth, which is reassuring given the challenging macroeconomic conditions in the US and Europe. However, despite these positive fundamentals, there are concerns about the impact of AI developments on the company’s future.
While AI currently acts as a tailwind by reducing costs and improving conversion rates, the long-term implications remain uncertain. The market is still grappling with the potential existential threat or opportunity AI presents to online travel agencies like Booking Holdings. Additionally, the stock’s valuation at 20 times the 2026 EPS is considered reasonable, but the persistent AI overhang creates a cautious outlook. Therefore, Clarke has opted for a Hold rating, reflecting both the company’s strong performance and the uncertainties surrounding AI’s future impact.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $5,701.00 price target.