This content article reports that JMP Securities has affirmed its rating for Booking Holdings (BKNG), a leading online travel agency. The company’s shares were given a market outperform rating, meaning that they are expected to perform better than the overall market.
The article notes that Booking Holdings has been impacted by the COVID-19 pandemic, which has reduced travel demand significantly. As a result, the company’s revenue has declined by around 48% and earnings have plunged by 71% over the past year. However, JMP Securities remains optimistic about the company’s potential for recovery as travel demand returns.
The report also highlights Booking Holdings’ strong balance sheet with over $14 billion in cash and a debt-to-equity ratio of just 0.35. This puts the company in a solid position to weather the current downturn and invest in growth opportunities as the travel industry bounces back.
Moreover, JMP Securities believes that Booking Holdings is well-positioned to benefit from the growing trend towards online booking for both leisure and business travel. The company’s broad range of brands and services, including popular platforms such as Booking.com, Priceline.com, and Kayak.com, make it a go-to option for travelers worldwide.
Overall, JMP Securities’ market outperform rating for Booking Holdings reflects its positive outlook for the company’s long-term growth prospects and its ability to navigate the current challenging environment.