Booking & Expedia Gain Outperform Rating: Read How These Online Travel Stocks Stand Under This Analyst's Radar
Portfolio Pulse from Lekha Gupta
BMO Capital Markets analyst Brian J. Pitz initiated coverage on several online travel stocks. Airbnb Inc (ABNB) received a Market Perform rating with a $134 price target, citing potential revenue risks from regulatory challenges. Booking Holdings Inc (BKNG) was rated Outperform with a $4,150 price target, with expectations of wallet share gains and benefits from the travel tailwind in 2024. Expedia Group Inc (EXPE) also received an Outperform rating and a $181 price target, with positive outlooks on its integrated tech stack and customer experience improvements. TripAdvisor Inc (TRIP) was given a Market Perform rating and a $20 price target, with potential for strategic M&A. BKNG and EXPE stocks were up, while ABNB and TRIP were down in the last check Tuesday.
January 09, 2024 | 6:52 pm
News sentiment analysis
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NEUTRAL IMPACT
Airbnb received a Market Perform rating with a $134 price target due to potential regulatory revenue risks.
The Market Perform rating suggests a neutral outlook, but the mention of regulatory risks and potential revenue impact could create uncertainty among investors.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
TripAdvisor was rated Market Perform with a $20 price target, facing competitive pressure but with potential for strategic M&A.
The Market Perform rating reflects competitive challenges, particularly from Google, but the potential for strategic M&A involving Viator and TUI experiences offers some upside.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Booking Holdings rated Outperform with a $4,150 price target, expected to gain from the travel tailwind and loyalty programs.
The Outperform rating and high price target indicate a strong positive outlook, supported by strategic initiatives like the Genius Loyalty program and recovery in Asia.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Expedia Group received an Outperform rating and a $181 price target, with a positive view on its tech integration and customer experience.
The positive rating is based on Expedia's successful tech integration and the launch of One Key to enhance loyalty value, which are expected to outperform market expectations.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90