Iran Peace Deal Sends Oil Lower: Top 5 Travel Stocks to Buy Now

Page 5 of 5

1. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 95

According to a report released on June 23, BTIG analyst Jake Fuller reaffirmed a Buy rating on Booking Holdings Inc. (NASDAQ:BKNG) with a price target of $250. The firm’s price target offers an additional 37% upside from current levels. In contrast to BTIG, Richard Clarke from Bernstein reaffirmed a Hold rating on the stock on June 11. He also assigned a target price of $188 to the stock.

BKNG’s exceptional long-term execution and scale advantages have helped it outperform the broader travel industry. The company has achieved this by focusing on attractive markets and efficiently attracting customers through its marketing and distribution channels. Moreover, with the increasing travel demand, BKNG is building platforms that hotels increasingly rely on.

The main reason for Richard Clarke’s neutral stance is that the AI tailwind could pose a threat to travel companies. The analyst believes that as of now, Booking Holdings Inc. (NASDAQ:BKNG) is benefiting from its huge size and large network of travelers. However, as AI tools become widely available, the industry’s focus may shift from pure scale to AI assistants. Hotels may prioritize AI-driven channels over online travel agencies for their best offers. This could create a long-term risk for the BKNG business model and its competitive position.

Booking Holdings Inc. (NASDAQ:BKNG) provides online travel and related solutions through its brands: Booking.com, Priceline, Agoda, KAYAK, and OpenTable. The company is based in Norwalk, Connecticut, and was founded in July 1997 by Jay Scott Walker.

While we acknowledge the potential of BKNG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BKNG and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 AI Stocks That Are Surging and 10 Best 52-Week Low Technology Stocks to Buy According to Analysts.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 5 of 5
1281292 - 11759070 - 1