Skip to main content

Market Overview

SunTrust Cuts Booking Holdings Price Target On Worsening Travel Trends

Share:
SunTrust Cuts Booking Holdings Price Target On Worsening Travel Trends

Booking Holdings Inc (NASDAQ: BKNG) has withdrawn its first-quarter guidance citing the worsening impact of coronavirus.

The withdrawal of its outlook, which was issued less than two weeks back, suggests that the fast-spreading coronavirus is taking a toll on the company’s core European market, according to SunTrust.

The Booking Analyst

Naved Khan maintained a Buy rating for Booking Holdings, while reducing the price target from $2,250 to $2,100.

The Booking Thesis

The global travel landscape is rapidly deteriorating. Demand is likely to continue contracting as the virus spreads across developed economies and the second quarter could be the worst hit, Khan said in the note.

Booking Holdings indicated that the virus outbreak escalated over the past week and suggested incremental travel weakness in Europe and North America.

See Also: Cancel Reservations For Booking Holdings Stock Until Coronavirus Outbreak Subsides, Argus Says In Downgrade

The analyst said that the virus could pressure the company’s results over the next few quarters. He reduced the 2020 estimates for bookings, revenues, and EBITDA from $94,294 to $63,656, from $14,983 million to $9,664 million and from $5,913 million to $3,078 million, respectively.

Khan expects travel declines to bottom during the second quarter and suggested long-term investors to look beyond the coronavirus hit. He added that the “intrinsic value of the business remains very compelling” for long-term investors and that Booking Holdings’ performance could rebound in 2021, “propelled by a sticky, best-in class offering.”

BKNG Price Action

Shares of Booking Holdings were trading up 0.95% at $1,542.28 at time of publication.

 

Photo by Caroline Selfors on Unsplash

Latest Ratings for BKNG

DateFirmActionFromTo
Apr 2021JefferiesUpgradesHoldBuy
Apr 2021Wolfe ResearchInitiates Coverage OnOutperform
Mar 2021Gordon HaskettInitiates Coverage OnHold

View More Analyst Ratings for BKNG
View the Latest Analyst Ratings

 

Related Articles (BKNG)

View Comments and Join the Discussion!

Posted-In: Analyst Color News Guidance Price Target Reiteration Travel Analyst Ratings General

Need corporate guidance data?
Click here to see licensing options.

Latest Ratings

StockFirmActionPT
NDAQOppenheimerMaintains182.0
SELFAegis CapitalInitiates Coverage On6.0
TELOppenheimerMaintains140.0
LRCXStifelMaintains780.0
ROGB. Riley FBRMaintains240.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
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