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Wedbush analyst Scott Devitt reiterated a Buy rating on Booking Holdings Inc. (NASDAQ: BKNG), raising the price target from $3,300 to $3,850.
The analyst writes that Booking is the leading OTA globally, with an expected one billion plus room nights booked across its brand portfolio in 2023.
Booking has best-in-class margins (driven primarily by marketing efficiency), a proven management team, and a multi-year strategy to drive EPS growth through flights/payments growth, the analyst adds.
Devitt is also upbeat about BKNG's U.S. expansion (where the company is gaining share) and APAC, where the travel recovery is ongoing.
Recent changes to the business model (flights, payments, Connected Trip) should support growth above pre-pandemic levels (8%+ bookings/rev growth, and 15%+ EPS growth) as demand normalizes, Devitt writes.
The analyst forecasts long-term margins to trend toward 35%+ with excess cash allocated to buybacks.
On the flip side, the analyst projects the company ...