BKNG

Booking Holdings Inc

TMT, Consumer


Presented:01/19/2017
Price:$1,539.02
Cap:$76.91B
Current Price:$4,307.77
Cap:$144.42B

Presented

Date01/19/2017
Price$1,539.02
Market Cap$76.91B
Ent Value$79.21B
P/E Ratio39.26x
Book ValueN/A
Div Yield0%
Shares O/SN/A
Ave Daily Vol445,066
Short IntN/A

Current

Price$4,307.77
Market Cap$144.42B
Booking Holdings Inc is an online travel company, which provides travel and related services. It offers accommodation reservations including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties. The company provide services through Booking.com, priceline.com, agoda.com, KAYAK, rentalcars.com and OpenTable brands. It also allows consumers to easily compare airline ticket, hotel reservation and rental car reservation information from hundreds of travel websites at once through KAYAK. The company was founded by Jay Scott Walker on July 18, 1997 and is headquartered in Norwalk, CT.

Please note, on 02/23/18 The Priceline Group, Inc. (PCLN) changed its company name and ticker to Booking Holdings Inc. (BKNG). The content of this idea will make reference to the original company name and ticker symbol.

Publicly traded companies mentioned herein: Expedia Inc (EXPE), Hilton Worldwide Holdings Inc (HLT), Priceline Group Inc (PCLN), Trivago NV (TRVG)

Highlights

Priceline Group (PCLN) shares have stagnated since the company reported Q3 2016 earnings in early November, 2016. With the stock trading at $1,530, the presenter sees a favorable risk/ reward and is long. The worldwide hotel industry is a $500+ billion market and PCLN will do ~$60 billion, so there is still substantial room for growth. In part this bullish view is based on Booking.com continuing to have success in the US and a continued push into the vacation rentals market. Room nights and hotel inventory continue to grow, so PCLN should penetrate the market more quickly than the Street and skeptics anticipate. While the Street is modeling ~$85 of EPS in 2018, the presenter thinks $100 is achievable, and at a 20x forward earnings multiple investors could see 30% upside in 12-18 months (versus an opined 10% downside risk).

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Idea Discussion

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