Time To Book?

Booking Holdings $BKNG ( ▲ 1.04% ) is back in favor at Gordon Haskett Research Advisors, which upgraded the stock to Buy from Hold ahead of earnings.

The firm is due to report on February 18.

Analyst Robert Mollins set a $5,440 price target, arguing the market has overcorrected on AI concerns.

Shares have lagged over the past year, but Gordon Haskett says that underperformance has created a compelling entry point rather than a warning sign.

Mollins called Booking the firm’s highest-conviction idea, saying investors are discounting durable operational advantages.

He pointed to Booking’s scale, margins, and entrenched position as meaningful barriers, alongside high startup costs and legal risks that deter would-be AI competitors.

In Gordon Haskett’s view, AI-driven encroachment fears have overshadowed the company’s defensive positioning rather than undermined it.

Mollins expects upside in room nights versus consensus, which he believes would flow through to revenue, EBITDA, and EPS.

He also cited foreign-exchange tailwinds from a weaker dollar and noted that Booking now trades well below recent valuation multiples.

With margins stronger than peers and the valuation gap narrowing, Gordon Haskett sees a low-risk setup with meaningful upside if sentiment resets.