Morgan Stanley analyst Matthew Costello initiated coverage this week on the online travel agency sector, assigning Booking Holdings (BKNG) an Overweight rating and a $230 price target. According to Sina Finance, he said Booking is the most fundamentally advantaged name in the sector.
Booking shares have fallen nearly 20% this year as investors worry that artificial intelligence could erode market share. Costello said in a Wednesday research note that Booking has differentiated supplier resources, continued growth in direct website traffic, and a key role in settlement and fulfillment, which support its competitive edge.
Morgan Stanley also pointed to a long-term positive trend: consumers continue shifting spending toward services and experiences, while online penetration in global leisure travel is only about 70%, leaving room for further digital growth. The bank said Booking's current valuation appears attractive.