Investing.com -- Truist lifted its targets for Booking Holdings (NASDAQ:BKNG) and Expedia (NASDAQ:EXPE) shares on Wednesday, citing strong travel trends in Europe and Asia-Pacific as well as easing U.S. comparisons.
The firm increased its BKNG target to $4,720 from $4,700 and its EXPE target to $163 from $148, though it maintained a Hold rating on both stocks.
“Continued relative travel strength in Europe and Asia-Pac ex-China” was a key driver for Booking, while Expedia is expected to benefit from “easing comps in vacation rentals”, particularly through its Vrbo platform, analysts wrote.
Truist noted that alternative accommodations continue to gain market share for BKNG in both the U.S. and Europe, whereas EXPE’s Vrbo is still seeing market share losses in the U.S. but has gained share in Europe.
Despite strong fundamentals in international markets, U.S. domestic travel is said to remain sluggish, Truist observed.
The firm pointed out that Americans continue to favor international vacations, taking advantage of the strong dollar for “value play” destinations like Japan and Europe. “Airfare for international trips is -4% versus 2024 while domestic trips is +3%.,” the analysts noted, further incentivizing outbound travel.
While BKNG is considered better positioned due to its exposure to Europe and alternative accommodations growth, Truist said EXPE may see a potential rebound in U.S. domestic travel, particularly among middle-class Americans who delayed spending before the election.
However, Truist emphasized that EXPE’s strategic direction under new leadership remains unclear, stating, “We await clearer and longer-term evidence of the success of the tech transformation.”
Overall, Truist remains incrementally more favorable on BKNG but acknowledges that EXPE could benefit from domestic demand recovery in 2025.