DA Davidson has reduced its 12-month price target for Booking Holdings (NASDAQ:BKNG) to $6,000 from $6,600 while retaining a Buy recommendation on the shares. The firm attributed the downward adjustment to uncertainty related to artificial intelligence, even though the company posted robust fourth-quarter results that beat guidance and consensus across all principal line items.
Market data from InvestingPro shows BKNG trading at $3,938, well below its 52-week high of $5,839 and identified as undervalued on a Fair Value basis. The company’s recent financial performance offers a mixed picture for investors balancing near-term demand strength with longer-term thematic concerns.
Booking’s profitability metrics remain notable. The business reported gross profit margins of 87.36% and produced $26.92 billion in revenue over the last twelve months. Management also delivered accelerating room night volume, with growth rising to 9% - above the company’s guidance range of 4% to 6% - reflecting broad-based demand across regions.
Geographic performance was positive across the board. Both Asia and the U.S. recorded year-over-year increases in room nights, with the U.S. showing an acceleration in growth despite a challenging year-ago comparison. In the U.S., the stronger showing was tied to performance in paid channels and business-to-business operations, even as average daily rates and length of stay fell slightly.
Institutional research coverage has reflected a range of analyst responses to the same set of results. DA Davidson raised its 2026 gross bookings estimate by 4% and nudged its adjusted earnings per share forecast for 2026 up by 2%. The updated price target corresponds to a multiple of 22.5 times DA Davidson’s 2026 adjusted earnings per share estimate.
Across the analyst community, there has been a mix of revisions. The record shows that 10 analysts have revised earnings estimates upward for the upcoming period. Several firms altered price targets and ratings in response to the results and to concerns about potential AI-driven disruptions. Piper Sandler lowered its target to $5,000 and Cantor Fitzgerald trimmed its target to $4,495, both citing worries about the long-term growth trajectory in light of AI. At the same time, BMO Capital raised its price target to $6,200, and TD Cowen moved its target to $6,000, the latter acknowledging room night growth and margin improvements. Citizens preserved a Market Perform rating, emphasizing Booking’s resilience tied to its exposure to independent and boutique hotels.
Recent operating metrics emphasized in research notes underline the underlying demand environment. Booking exceeded prior street estimates for room nights and gross bookings by 2% and 4%, respectively, while adjusted EBITDA came in 4% above expectations. Those beats point to healthy demand across regions and to the company’s ability to convert top-line activity into earnings before interest, taxes, depreciation and amortization.
Despite the favorable operating results, the prospect of disruption or structural change related to artificial intelligence is prompting some analysts to re-evaluate long-term growth assumptions and valuation multiples. DA Davidson’s move illustrates that even solid near-term execution does not fully insulate the stock from sector-level thematic concerns that can affect target setting.
Investors seeking deeper coverage can access the full Pro Research Report for BKNG on InvestingPro, which covers more than 1,400 top U.S. equities.
Summary
DA Davidson cut its price target on Booking Holdings to $6,000 from $6,600 while maintaining a Buy rating, citing AI-related uncertainty despite strong fourth-quarter results. Booking outperformed guidance and consensus in key metrics, delivered an 87.36% gross profit margin, $26.92 billion in trailing twelve-month revenue and room night growth of 9%.