Booking Holdings gains after Oppenheimer points to 35% upside potential
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Oppenheimer upgraded Booking Holdings (NASDAQ:BKNG) to an Outperform rating after having it slotted with a Perform rating.
Analyst Jed Kelly said it believes BKNG's investing aggressively into the recovery via payments, connected trip, brand and loyalty initiatives will yield higher share gains, which will help sustain a low 20's P/E multiple on the online travel stock.
"We raise our '23E revenue/EPS 4%/10% on our view of looser int'l restrictions driving a faster recovery, offsetting pockets of geo-political volatility. Additionally, we see BKNG snapping back the most relative to OTA peers on any Ukraine resolution."
The firm projects 65% 2021-2023 EPS growth. Oppenheimer's price target of $2,560 on BKNG is based on 20X the 2023 EPS estimate, below its current 21X 2022 multiple, representing a 9% premium to the S&P500 Index vs. the historic premium of 16%. The price target reps 35% upside for BKNG shares.
Shares of Booking Holdings (BKNG) rose 4.28% in premarket action to $1,980.90 to follow on yesterday's 4.53% gain amid a broad rally in travel and leisure names.