BKNG - Booking Holdings: I Wish I Could Book Some Shares
2024-02-01 04:12:04 ET
Summary
- Booking Holdings is a profitable and robust company with a wide economic moat in the online travel industry.
- The company operates multiple platforms and benefits from a tangible cost advantage and powerful network effects.
- Despite its strong financial performance, the current valuation of BKNG is not attractive for value-oriented investors.
- Shares are fairly valued at best with around 10% revenue growth already being priced in for FY24.
- I love the firm but not the current share price: Hold rating issued.
Investment Thesis
Booking Holdings Inc. (BKNG) is in my mind a truly remarkable company. Their business is incredibly profitable, robust and benefits from a tangible and wide economic moat.
Consistent growth, a massive cash flows and a great product underpin their operations while continuous expansion into new forms of booking services and platforms has allowed the firm to stay relevant in a highly competitive market environment.
Unfortunately, shares are currently fairly valued at best leaving little margin of safety for a value-oriented investor to get involved.
While I truly love the company and its cash-generation abilities, the valuation is simply not attractive enough especially given the cyclicality of the travel industry....
Booking Holdings: I Wish I Could Book Some Shares