Booking Holdings stock downgraded to hold at Benchmark; analyst says the company is playing ‘catch-up’
Benchmark analyst Daniel Kurnos lowered his rating on shares of Booking Holdings Inc. to hold from buy on Friday, writing that the company, formerly known as Priceline, is behind in some of the key areas in the online-travel industry. “Packages, activities and alternative lodging have even more rapidly become the incremental growth engine in the space, and in those areas, we find Booking Holdings continuing to play catch-up in an increasingly competitive environment,” Kurnos wrote. “While we see as much as 10% upside to consensus estimates and the current share price, the current transition period, which features decelerating room night and booking growth, could persist, continuing to potentially pressure the company’s premium valuation.” The stock is unchanged in premarket trading. Booking shares are up 14% over the past 12 months, while Expedia Inc. shares have fallen 19% and the S&P 500 has risen 13%.