Breaking News: JPMorgan Lowers Booking Holdings (BKNG) Price Target to $3,860 for December 2025 - What Does This Mean for Investors?
In a recent update, JPMorgan has adjusted its price target for Booking Holdings (NASDAQ: BKNG) shares, lowering it to $3,860 from the previous $4,025. Despite this adjustment, the firm continues to recommend the stock with an Overweight rating.
The analysis provided by JPMorgan highlights the mixed outcomes from Booking Holdings' second-quarter performance and future expectations. While the company reported a 7% year-over-year increase in room nights for the second quarter, surpassing its own guidance, growth is expected to slow down in the third quarter due to various factors such as reduced expansion in booking windows and a slowdown in growth across Europe.
Booking Holdings' Gross Bookings growth is also being impacted by a shift towards regions with lower Average Daily Rates and pressure on airfare prices. As a result, the third-quarter guidance was not as robust as anticipated, leading to a reduction in the full-year outlook.
Despite these challenges, Booking Holdings has slightly increased its revenue growth projection to "more than 7%" and raised the EPS growth forecast to "15%+". However, the Gross Bookings growth guidance was reduced, shaping the short-term investor narrative.
JPMorgan reaffirmed its preference for Booking Holdings as the top pick in the online travel sector, highlighting the company's cost management, effective execution, and strong margins. The new price target of $3,860 is based on the firm's estimated 2026 GAAP EPS and Adjusted EBITDA.
In recent news, multiple analyst firms have made adjustments to their price targets for Booking Holdings, with varying outlooks on the stock. While some firms lowered their targets, others raised them, citing different reasons such as business fundamentals and performance.
Overall, the adjustments made by JPMorgan and other analyst firms reflect the current challenges and opportunities facing Booking Holdings. Investors should consider these changes in price targets and analyst ratings when making decisions about their investment portfolios.
In conclusion, the recent adjustments in price targets for Booking Holdings highlight the company's performance and outlook in the travel sector. Investors should pay attention to these updates and consider them in the context of their overall investment strategy.