Booking Holdings (NASDAQ: BKNG) gained attention on Monday after Truist analyst Gregory Miller upgraded the stock from Hold to Buy, pointing to robust long-term growth prospects in Asia, steady global economic expansion, and a more attractive valuation following a recent share price pullback.
Miller noted that Booking’s shares have declined about 7% in the past month, even as the S&P 500 and Nasdaq rose by 2-3%, creating what he views as a compelling entry point. The firm also raised its price target to $5,750 from $5,630, maintaining a 22x multiple on its 2026 earnings estimate.
The analyst cited strong structural tailwinds in Asian travel markets as a major factor behind the upgrade, highlighting expected 7-9% compound annual growth rates (CAGRs) in air passenger traffic across South and Southeast Asia over the next two decades. Booking’s exposure to Asia has also increased to around 25%, up from 20% pre-pandemic, positioning it to benefit disproportionately from the region’s travel boom.
Miller further emphasised that global GDP growth forecasts of about 3% annually through 2025–2027, with Asia growing 1-2 percentage points faster, should support long-term travel demand. “GDP trends correlate closely with travel demand over time,” he wrote.
While some investors have expressed concern about artificial intelligence disrupting online travel agencies (OTAs), Miller believes the market may be overestimating near-term risks. “There is no consensus on AI’s long-term impact,” he said, suggesting current fears could be overdone.
In the same note, Truist also lifted its price target on Expedia (NASDAQ: EXPE) from $168 to $210, citing internal improvements such as better positioning for Vrbo and rising investor sentiment. However, it maintained a Hold rating on Expedia due to mixed U.S. leisure travel trends and limited clarity around its international growth outlook.
Overall, Truist sees the online travel sector remaining fundamentally healthy but cautioned that valuations are not without risk as the industry enters a mid-to-late cycle phase.
Booking shares were expected to respond positively to the upgrade as investors welcomed signs of confidence in the company’s long-term global growth story.
