12:08 PM EDT, 10/29/2025 (MT Newswires) -- Booking Holdings' ( BKNG ) solid fundamentals, supported by strong B2B performance, outbound travel demand, and higher direct traffic in the US, remain intact, but doubts over the impact of artificial intelligence tools persist, Morgan Stanley said in a Wednesday note.

Alternative accommodations grew 10% year over year in the third quarter, roughly in line with the previous quarter, the brokerage said.

Despite recent integrations of AI tools such as ChatGPT, Morgan Stanley said the debate over potential online travel agency disruption remains unresolved. The firm added that consumer behavior will determine whether new agentic tools gain traction and shift demand away from traditional channels like search, social, or direct traffic.

The brokerage raised its 2026 and 2027 room night forecasts by 1% and slightly lifted adjusted earnings before interest, taxes, depreciation, and amortization and earnings per share estimates following stronger-than-expected third-quarter results and improved fourth-quarter guidance.

Morgan Stanley raised its price target on Booking Holdings ( BKNG ) to $6,150 from $5,650 and reaffirmed its equal-weight rating.

Price: 5131.38, Change: +10.81, Percent Change: +0.21