Bank of America downgraded Booking Holdings ( NASDAQ: BKNG ) to a Neutral rating from Buy on Wednesday.
Analyst Justin Post said the thesis on an Asia recovery for BKNG seems to be playing out as a positive driver and China outbound could provide an additional boost this summer. However, Post warned that Booking ( BKNG ) stock has far outperformed peers and comparables will get tougher in Q2.
The top risk seen for Booking Holdings ( BKNG ) is that European bookings could soften on a tough macroeconomic backdrop. Booking ( BKNG ) is noted to generate over 60% of revenue in Europe, which was a strong growth driver in 2022 despite FX pressure on a travel recovery. "Due to Omicron comps, we expect Summer bookings to be ahead of 2022 levels in 1Q, but would expect a slowdown in booking trends in 2Q on both on a y/y basis and vs 2019," noted Post.
Shares of Booking Holdings ( BKNG ) were down 1.97% premarket to $2,355 in premarket trading on Wednesday to cut into the strong year-to-date rally vs. the S&P 500 Index and travel peers.
Read why Seeking Alpha author Welbeck Ash Research is bullish on the upside for Booking Holdings in 2023.
For further details see:
Booking Holdings slips after losing bull rating at Bank of America