BMO cuts Booking Holdings stock price target on softer outlook

BMO Capital has lowered its price target on Booking Holdings (NASDAQ:BKNG) stock to $245 from $250 while keeping an Outperform rating. The firm believes the stock is still undervalued, with a Fair Value of $204.42 suggesting potential upside from its current trading price near $156. Booking Holdings' Q3 2026 results exceeded expectations, surpassing the high end of guidance, as strong travel demand compensated for some slowdown later in the quarter.

Adjusted revenue, gross bookings, and adjusted EBITDA were all 4%, 3%, and 3% ahead of consensus, respectively. Booking Holdings boasts a robust gross profit margin of 87%, and its stock trades at an appealing PEG ratio of 0.29. However, the company's fourth-quarter 2026 guidance was more conservative and below expectations, though full-year guidance remained unchanged.

Management cited the indirect effects of the Iran conflict, softer international travel trends, and localized unrest in some European cities as factors influencing their revised estimates. BMO adjusted its outlook to reflect a softer near-term perspective for the company.