Here’s Why Booking Holdings is Up $88

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FILE PHOTO: The logo global online travel brand Expedia of is pictured at the International Tourism Trade Fair in Berlin

Keep an eye on travel stocks, like Booking Holdings (BKNG).

Up another $85 a share, BKNG is now up to $2,188.51 and rocketing higher.  All thanks to optimism for strong summer travel season, and recent earnings.

The company reported first-quarter earnings adjusted earnings of $3.90 a share, compared with a year-earlier adjusted loss of $5.26. Revenue rose to $2.7 billion from $1.14 billion.  Analysts were only looking for EPS of 85 cents on $2.53 billion in sales.  Gross bookings jumped to $27.3 billion – the highest in company history.  It was also well above gross bookings of $11.94 billion just a year earlier.

“Despite an uncertain macroeconomic environment, we have seen continued strengthening of global travel trends so far in the second quarter of 2022, and we are preparing for a busy summer travel season ahead,” said Glenn Fogel, Booking Holding’s chief executive, in a statement. “I’m encouraged by how well our teams are executing to capture travel demand in this recovery environment and our progress in expanding our payments platform at Booking.com while we build towards our Connected Trip vision.”

Analysts like what they’re seeing, too.

Citi analysts, for example just raised their price target on BKNG to $2,800 from $2,600.  JP Morgan also raised its target to $2,900 with an overweight rating.  “The macro environment remains volatile, but we believe it is more than offset near-term by pent-up travel demand. We also believe the underlying business fundamentals continue to improve, & BKNG is executing well,” said JP Morgan, as quoted by Barron’s.