|Bid||2,444.06 x 800|
|Ask||2,450.00 x 800|
|Day's Range||2,405.55 - 2,454.72|
|52 Week Range||1,303.25 - 2,469.58|
|Beta (5Y Monthly)||1.27|
|PE Ratio (TTM)||1,701.43|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Booking Holdings (BKNG) stock is up nearly 50% since November but can it continue to rise on post-pandemic recovery hopes? On one hand, shares have not only bounced back from last year’s losses, but they are now trading well above pre-outbreak levels. This leaves investors questioning whether to expect a pull-back, or possible sideways action in the near-term. On the other hand, with the analyst community still bullish on the stock, there may be room for some additional gains. One analyst sees shares heading to $2,950 per share purely based on the re-opening of travel in Europe. So, who’s right, and who’s wrong? As sentiment for this stock continues to lean towards the positive, higher prices in the coming months may be possible. But with a rich forward valuation, investors might consider taking a more cautious view on the stock. BKNG Stock And The ‘Reopening Trade’ Since falling below $1,300 per share at the start of pandemic lockdowns, BKNG, together with the rest of the travel sector, has made a stunning recovery. Yet with so much “recovery anticipation” priced-in, can this company, which owns travel booking platforms including Booking.com and Priceline.com, live up to its high expectations? According to one very bullish analyst, it’s more than possible. Bank of America’s Justin Post recently upgraded the stock from Hold to Buy and not only sees the company living up to its current expectations, but believes the best is still yet to come for BKNG stock. With travel demand set to rebound massively in the U.S., Europe, and other markets, Post sees much further upside ahead based on his $2,950 per share price target. While there’s no denying that the post-pandemic “reopening” bodes well for Booking Holdings, the question remains whether this has already been priced-in. Valuation concerns may be on the backburner for now but with the potential risk of it becoming a larger worry going forward, shares may have little room to appreciate through the rest of 2021. Valuation Could Affect Future Performance With many signs pointing to an early-stage recovery for the travel economy, it’s tough to be bearish on this sector. Hence, going short this sector right now seems too risky to consider. But with the valuation of stocks like BKNG already reflecting the upside from this recovery, the ship has clearly sailed with regards to buying travel stocks on the “reopening” catalyst. Trading at around 59x estimated 2021 earnings ($40.41 per share), and 25.4x estimated 2022 earnings ($93.64 per share), BKNG at $2,400 more the factors in a seamless post-Covid recovery in business and leisure travel. In short, with high expectations priced-in, the stock could see a tremendous sell-off if the recovery falls short of expectations. The top end of analysts’ earnings projections of $64.75 in 2021 and $123.21 in 2022 are substantially higher than the average, but with analyst sentiment mixed (as seen from the wide price target range below), it’s tough to predict whether investors on average are under-enthusiastic, over-enthusiastic, or right on the mark. What Analysts Are Saying About BKNG Stock According to TipRanks, BKNG comes in as a Moderate Buy based on 11 Buy, 11 Hold, and 1 Sell recommendations. The average analyst price target of $2,524,45 implies upside potential of approximately 5% from current levels over the next 12 months. Analyst price targets range from a low of $1,890 to a high of $3,000 per share. (See Booking Holdings stock analysis on TipRanks) Bottom Line: As Uncertainty Continues, BKNG Stock May Hold Steady In The Near-Term There’s plenty to back up the bull case for BKNG stock. The prospects of travel making a faster-than-expected recovery give the shares a good shot of hitting the high-end of analysts’ targets over the next 12 months. Yet, with the “reopening” catalyst more than priced-in, there may not be much room left for Booking Holdings' stock to run. This may result in further sideways price action in the near-term. Disclosure: Thomas Niel held no position in any of the stocks mentioned in this article at the time of publication. Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.
As millions of Americans get vaccinated and the demand for travel returns, some big players in the travel industry are supporting the idea of vaccine passports in an effort to revive international travel.
As the weather warms, consumers traditionally start thinking about where to spend their hard-earned vacation time. At least, that’s usually the case. According to the United Nations World Tourism Organization, the COVID-related decline in international travel in 2020 resulted in an estimated $1.3 trillion loss in global export revenues. That loss is more than 11 times the deficit resulting from the global economic crisis more than a decade prior. With the industry in serious need of recovery and consumers slowly taking to the skies again, here are a few leading brands looking for a summertime bounce-back. Hilton Worldwide Holdings Inc. (NYSE: HLT) With more than 6,400 properties in 119 countries that include the Waldorf Astoria, DoubleTree, Embassy Suites, and over a dozen other brands, Hilton’s marketing team is undoubtedly working hard to coax vacationers and business travelers back to its properties. Hilton reported a net loss of $225 million for its 2020 fourth quarter, compared with net income of $176 million for the same period in 2019. For 2020 full-year, the hotel operator’s net loss totaled $720 million compared with a net gain of $886 million in 2019. The company is banking on travel returning to some semblance of normalcy, having announced plans to build up its presence in Thailand by up to 2,000 over the next 24 months and expand its upscale DoubleTree by Hilton brand in Islamabad, Pakistan, in 2025. Hilton also announced the opening of Virgin Hotels Las Vegas, Curio Collection by Hilton. The property consists of more than 1,500 chambers and suites, an exclusive spa, 12 food and beverage outlets, daytime and nighttime live entertainment venues, a 60,000-square-foot state-of-the-art casino and more. Booking Holdings Inc. (NASDAQ: BKNG) The world leader in online travel and related services, Booking Holdings brands include Booking.com, Priceline, agoda.com, Rentalcars.com, KAYAK and OpenTable. Virtually all of these brands suffered a brutal 2020. Fourth-quarter 2020 gross travel bookings for the holding company were $7.3 billion, a 65% decrease from the prior year, contributing to a net loss of $165 million, compared with net income of $1.2 billion in the fourth quarter of 2019. To entice tourists, Booking Holdings brands are creating new incentives and travel-related services. Rolled out late last year, Priceline VIP is a multi-tiered rewards program that offers discounts of up to 50% on over 45,000 name-brand hotels and up to 20% on rental cars. Other VIP perks include early access to future sales, exclusive coupons, and even deeper discounts as status levels increase. Booking Holdings’ KAYAK brand is looking to go beyond a travel search engine, having announced plans to open its own hotel in Miami Beach this April. Hotel operations will be integrated into the KAYAK app, providing 24/7 access to hotel staff and support, notifications of on-property events, room-ready alerts, itinerary management, housekeeping requests and more. Travelzoo (NASDAQ: TZOO) With more than 30 million members, Travelzoo is a global Internet media company that publishes deals from more than 2,000 travel, entertainment and local businesses such as restaurants and spas. While the company’s fourth-quarter consolidated revenue totaled $12.5 million, a 51% year-over-year decline, March 2021 was Travelzoo’s strongest month since pre-pandemic March 2020. As a result of the recovery of revenue and substantially lower operating expenses, the company expects to either come close to the break-even point or post a profit for its first quarter. Despite the travel industry’s uncertainty, Travelzoo shares are up more than 400% for the trailing 12 months ended March 30, 2021. Delta Air Lines, Inc. (NASDAQ: DAL) Described by CEO Ed Bastian as “the toughest year in Delta’s history,” passenger revenues for the major airline declined 70% in 2020. As a result, the airline went into cost-savings mode, reducing its average daily cash burn to $12 million in the December quarter, nearly 90% lower when compared to the early days of the pandemic. With passengers slowly returning to the skies, Delta is employing a few strategies to boost sales. These include extending the deadline to use purchased tickets to the end of 2022, bringing snacks on board again and offering hot meals in its Delta One or first-class cabins on certain transcontinental flights. Hertz Global Holdings, Inc. (OTC: HTZGQ) In an abysmal 2020 in which total revenues declined by 48%, the second-largest American car rental company adapted by realigning its fleet, consolidating locations and staffing to the reality of pandemic-level travel demand, cutting all non-essential spending and capital expenses. Hertz, whose brands include Dollar and Thrifty, filed for Chapter 11 bankruptcy last May in a plan that included the sale of substantially all of the assets of its fleet management subsidiary, Donlen Corporation, for $891 million in cash proceeds. Hertz plans to emerge from Chapter 11 this June. With business and leisure travel slowly picking up – boosted in part by the global vaccine rollout – brands such as these could be poised for a much-needed comeback in 2021. Brought to you by TiiCKER, where investors discover shareholder perks, and consumers become investors in the brands they love. See more from BenzingaClick here for options trades from BenzingaEuropean Countries Mull Mixing COVID-19 Shot Amid AstraZeneca Crisis: ReutersSo What's Up With Carnival Stock And Norweigan Cruise Line Stock Today?© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.