JP Morgan Reduces Target Price on Booking Holdings (BKNG) to $5,600

Core Insights - Booking Holdings Inc. is recognized as one of the best consumer discretionary stocks to buy currently, despite a recent target price reduction by JPMorgan from $6,250 to $5,600, which represents a 10.4% decrease while maintaining an Overweight rating [1] Financial Performance - Booking Holdings reported strong Q4 earnings with GAAP net income increasing by 34% year-over-year to $1.4 billion and GAAP earnings per share rising by 38% year-over-year to $44.22 [2] - Non-GAAP metrics also showed significant growth, with adjusted EBITDA up 19% year-over-year to $2.2 billion and adjusted earnings per share increasing by 17% year-over-year to $48.80 [2] Revenue and Profitability - The company's revenue grew by 16% year-over-year to $6.3 billion, driven by a 9% increase in room nights booked to 285 million and a 6% rise in average daily rates to $151 per night [3] - Net income margins improved by 300 basis points year-over-year to 22.5%, aided by approximately $550 million in annualized run-rate savings from the company's "Transformation Program" [3]