Why Booking Holdings Inc. (BKNG) is One of the Most Undervalued Hotel Stocks to Invest In Now

Core Viewpoint - Booking Holdings Inc. (NASDAQ:BKNG) is currently considered one of the most undervalued hotel stocks, with mixed analyst ratings and price target adjustments reflecting both strong financial performance and concerns over potential AI disruptions in the OTA business model [1][2]. Group 1: Financial Performance - Bernstein cut the price target for Booking Holdings to $4,698 from $5,407, maintaining a Market Perform rating, while noting that fiscal Q4 marked a strong finish to 2025 for the company [1]. - All three Online Travel Agencies (OTAs) reported top and bottom-line beats, with guidance ahead of consensus for 2025, and all grew market share profitably [1]. - Morgan Stanley upgraded Booking Holdings to Overweight from Equal Weight, adjusting the price target to $5,500 from $6,150, indicating confidence in the company's role as a key driver of travel [2]. Group 2: Business Model and Market Position - Booking Holdings provides online travel and related solutions, including accommodation reservations through brands like Booking.com, Priceline, Agoda, KAYAK, and OpenTable [3]. - The company is expected to continue "owning the customer" and capturing robust traveler data to drive high-margin direct business, despite the evolution of agentic tools [2].