© Reuters Wedbush removes Booking Holdings from best ideas list but says outlook still attractive
Wedbush analysts removed shares of Booking Holdings (NASDAQ:) from their Best Ideas List in a note Tuesday despite expecting it to continue executing well in the current travel environment.
The firm’s analysts explained they continue to favor Booking within the online travel vertical “given its leading competitive position,” strong free cash flow dynamics, and commitment to returning capital to shareholders.
“Leisure travel spending remained resilient throughout 2023 with strong growth in cross-border travel and international markets,” said Wedbush.
However, with nearly all major markets now back above 2019 levels and mixed signals from recent data across air travel, hotels, and alternative demand, analysts see less opportunity for upside to intermediate-term estimates in the coming quarters.
“Against this backdrop, we expect the frequency and magnitude of future earnings beats to be lower relative to the stellar revenue and profit growth Booking delivered in 2023,” the firm added.
Despite the removal of the stock from its Best Ideas List, Wedbush believes BKNG’s long-term outlook remains attractive and maintains its Outperform rating on shares of BKNG.