BKNG - Despegar: The Booking Holdings Of Latin America With More Catalysts And Growth

2024-03-25 11:12:48 ET

Summary

• Despegar is a rapidly growing online travel company that trades at multiples way below peers.
• The company is now profitable with accelerating revenues and cash flow.
• It is rapidly gaining market share in a growing market that is underpenetrated.
• Despegar has an unusually large number of catalysts that should lead to significantly higher revenues and earnings.

I published my first article about Despegar ( DESP ) on November 24, 2023. Since then, the stock is up 47%, helped by strong fourth quarter 2023 earnings reported last week. Despite the increased stock price, the upside with Despegar is every bit as compelling as back then.

A strong case can be made, and is made here, that Despegar has the best growth prospects of any online travel company outside of perhaps MakeMyTrip ( MMYT ). It trades at 1% of market cap of Booking Holdings despite dominating a very large market and well below all peers based on price to revenues....

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