Booking Holdings is tipped by Evercore ISI for 40% upside

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Evercore ISI boosted its rating on Booking Holdings (NASDAQ:BKNG) to Outperform from Neutral. The firm took a more positive view on the near-term upside and raised revenue and EBITDA estimates on the travel services stock by 8% to 12% to reflect what appears to be a very robust leisure travel recovery.

Analyst Mark Mahaney: "We have raised our BKNG estimates primarily to reflect a more rapid leisure travel recovery – one of the big takeaways from this EPS season. Against a very challenging environment for growth equities, BKNG sits squarely in the middle of an attractive Venn Diagram that captures both High Quality assets (based on fundamentals & valuation) and clear recovery plays (leisure travel). We believe this Venn positioning will allow BKNG to outperform even in a highly uncertain rate environment. BKNG’s exposure to Russia/Ukraine is also very limited – a low single digit % of bookings, and these bookings are likely location-fungible."

Evercore ISI assigned a pirce target to BKNG of $2,900 based on a 25X price-to-earnings multiple and 16X EV-to-EBITDA multiple off 2023 estimates. That PT reps 40% upside for shares and is above the average analyst price target of $2,728.45. Shares of Booking Holdings (BKNG) are up 1.35% in premarket action to $2,100.00

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