Bank of America downgrade booking holdings (NASDAQ:BKNG) to a Neutral rating from Buy on Wednesday.
Analyst Justin Post seems to play the thesis of Asia recovery as a positive driver for BKNG. China outbound could provide additional growth this summer. However, the post warns that booking (BKNG) stock has significantly outperformed peers and will be tougher in comparable Q2.
Top risk shown for booking holdings (BKNG) is that European bookings may soften against a difficult macroeconomic backdrop. booking (BKNG) is noted to generate more than 60% of revenue in Europe, which was a strong growth driver in 2022 despite FX pressure on travel recovery. “Due to Omicron comps, we expect summer bookings to be ahead of 2022 levels in 1Q, but on a y/y basis in 2Q and booking trends to decelerate in 2Q compared to 2019,” the post noted.
Shares of Booking Holdings (BKNG) were below 1.97% Premarket to cut to $2,355 in premarket trading on Wednesday Strong year-to-date rally against S&P 500 index and peers.
Read why Alpha author Welbeck Ash is looking for research Bullish on the upside for booking holdings in 2023.