Barclays has maintained its “overweight” rating for Booking Holdings Inc., also known as BKNG, one of the largest online travel agencies in the world. The investment bank cited Booking Holdings’ strong position in the online travel market, as well as its investments in new technologies and acquisitions, as reasons for its positive outlook.
Barclays also noted that Booking Holdings’ profitability and cash flow performance have remained strong, despite the challenges faced by the travel industry in 2020 due to the COVID-19 pandemic. The company reported a net income of $3.1 billion in 2019, up from $2.9 billion in 2018.
Meanwhile, Booking Holdings has been investing in new technologies to improve its platform and gain a competitive edge. The company recently launched its new BookingSuite platform, which provides hotels with a suite of tools to manage their online presence and drive bookings. Additionally, Booking Holdings has made strategic acquisitions in the past year, including hotel software provider Buuteeq and restaurant reservations system OpenTable.
Barclays also believes that Booking Holdings’ diversified portfolio of brands, which includes Booking.com, Priceline, Kayak, and Agoda, provides the company with stability and growth opportunities. While the company’s main brand, Booking.com, has been impacted by the pandemic, the other brands have seen growth in markets such as Asia and the United States.
Overall, Barclays has a price target of $2,200 for Booking Holdings’ stock, which is currently trading at around $1,848. The investment bank believes that the company’s strong position in the online travel market, investments in new technologies, and diversified portfolio make it a solid long-term investment.
However, it’s worth noting that Booking Holdings’ stock has been volatile in the past year due to the pandemic’s impact on the travel industry. The company’s stock price dropped by more than 50% in March 2020 when travel restrictions were put in place, but has since recovered to pre-pandemic levels.
Despite these challenges, Booking Holdings has been proactive in adapting to the changing landscape of the travel industry. The company has focused on domestic travel, as well as implementing new health and safety measures to address travelers’ concerns.
In conclusion, Barclays’ decision to maintain its “overweight” rating for Booking Holdings is a positive sign for the online travel agency. The company’s strong position in the market, investments in new technologies, and diversified portfolio make it a solid long-term investment. However, investors should be aware of the potential risks associated with the travel industry, particularly in the current economic climate.