By Sam Boughedda
Booking Holdings' (NASDAQ:BKNG) price target was lifted to $3,000 from $2,800 by Argus analysts on Thursday, with the firm having a favorable view of online travel companies.
Analysts, who maintained a Buy rating on the stock, said the firm has a particularly positive stance on BKNG due to its focus on Europe, where it generates most of its gross profit.
"We expect the company to benefit from the strength of its Booking.com brand in Europe and from recovery in the U.S.," the analysts wrote. "On valuation, BKNG is trading at a 17.9-times our 2023 EPS estimate, below the average for other online booking companies; however, we believe that it merits a higher multiple given the company's strong earnings outlook."
Argus' new price target represents a potential 17% rise from current levels. BKNG closed Wednesday's session down 0.75% at $2,547.25 per share, although it is up 0.83% premarket.
Argus' view contrasts analysts at Bernstein, who reiterated an Underperform rating on the stock on Wednesday.
The firm stated that they see a difficult narrative playing out for the company with Expedia (NASDAQ:EXPE) "beginning to fight back" and online travel agencies not being as resilient in a recession.