12:44 PM EDT, 10/25/2024 (MT Newswires) -- Booking Holdings ( BKNG ) currently benefits from investor confidence about stable travel trends in 2025, but earnings setup faces possible challenges from recent share price rise, election stress, and geopolitical tensions, Oppenheimer said in a note Friday.

Analysts, including Jed Kelly, said that the company's shares fell after its Q2 earnings report due to a slower growth forecast for nights booked, but they have since reached all-time highs. The recent slowdown is seen as a normalization rather than a sign of overall consumer weakness. With this backdrop and the new chief financial officer articulating the ability to balance growth/investments, Booking Holdings ( BKNG ) is expected to achieve similar margin expansion in 2025.

The analysts added that the company's margin growth in 2025 will provide a clearer outlook for investors as global leisure travel returns to 2019 levels. In contrast, Airbnb (ABNB) is expecting flat margin growth for 2025, while Expedia Group's (EXPE) new CEO is focusing more on operations than on profit margins.

"We believe Booking Holdings ( BKNG ) investing aggressively into products (payments/connected trip/brand/US/loyalty) will generate greater traveler loyalty and a higher direct traffic mix, that should equate to continuing margin expansion to sustain a low-mid 20s price-to-earnings multiple," the analysts said.

Oppenheimer raised its price target on Booking to $5,000 from $4,200, with an outperform rating.

Price: 4349.26, Change: +10.53, Percent Change: +0.24