Booking Holdings is viewed favorably at Argus ahead of earnings
KeithBinns
Argus called Booking Holdings (NASDAQ:BKNG) undervalued ahead of the online travel companyâs Q1 earnings report and full-year guidance update expected in early May. The firm pointed to strong revenue trends and the prospect for higher take rates.
Analyst John Staszak and team have a favorable view of online travel companies in general. BKNG stands out to the firm due to the online travel company's heavy focus on Europe, where it generates most of its gross profit.
The firm hiked its 2023 EPS estimate to $144 from $142 and the 2024 estimate to $171 from $170. In terms of valuation, BKNG is noted to be trading at 17.9X the revised 2023 EPS estimate, below the average for other online booking companies The higher multiple is seen as deserved due to BKNGâs strong earnings outlook. Argus assigned a new target price of $3,000, which implies a projected 2023 P/E of 20.8 and a potential return of 17% from current levels. The 52-week trading range on BKNG is $1,616.85 to $2,677.18.
The Seeking Alpha Quant Rating on Booking Holdings is flashing Strong Buy.