Market Overview

A Travel Pair Trade: Citi Upgrades Booking Holdings, Downgrades Expedia

Share:
A Travel Pair Trade: Citi Upgrades Booking Holdings, Downgrades Expedia

Citi says Booking Holdings (NASDAQ: BKNG) is looking more accomodating.

The Analyst

Citi analyst Mark May upgraded Booking Holdings from Neutral to Buy and raised his price target from $1,800 to $2,100.

May downgraded Expedia Group Inc (NASDAQ: EXPE) from Buy to Neutral and lowered his price target from $145 to $130.

The Thesis

May says with Booking Holdings underperformance over the last year, its valuation now better reflects the business’ slowdown and is now attractive on a cash flow basis.

Booking Holdings second-quarter guidance suggests top-line trends may be stabilizing and Citi proprietary data suggests trends in the European and LatAm travel markets may be improving said May.

The company has significantly upped its buybacks recent;y, and May believes that trend will continue and potentially increase further. A recent move to charge a commission on resort fees could also provide a tailwind to estimate revisions, he said.

Expedia’s downgrade comes as Vrbo’s growth has disappointed and slowed meaningfully “and this could persist and weigh on EXPE’s overall growth given Vrbo changes, Google changes, and heightened competition”, May added.

May also said Booking Holdings is stepping up its U.S. investments, which could weigh on both Expedia’s Core OTA and Vrbo growth.

Price Action

Booking Holdings shares closed down 1.61 percent at $1,716.93. Expedia shares closed down 0.23 percent at $116.44.

Related Links:

Sell-Side Debates Whether Investors Should Travel With Booking Holdings After Q4 Print

Need A Reason To Buy Booking Holdings? Deutsche Bank Offers 5

Latest Ratings for BKNG

DateFirmActionFromTo
Sep 2019DowngradesOutperformMarket Perform
Aug 2019MaintainsEqual-Weight
Aug 2019MaintainsBuy

View More Analyst Ratings for BKNG
View the Latest Analyst Ratings

Posted-In: CitiAnalyst Color Upgrades Downgrades Price Target Travel Analyst Ratings General Best of Benzinga

 

Related Articles (EXPE + BKNG)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NVDACascendMaintains220.0
ADBECleveland ResearchInitiates Coverage On283.0
IMOCiBCUpgrades
RETAJefferiesMaintains254.0
SNAPAreteUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Green Peak Innovations Launches Michigan Cannabis Brand

L Brands Analysts Review Q1 Print; Wells Fargo Says Bath And Body Works 'One Of The Brightest Spots In Retail'