03:46 PM EDT, 11/01/2024 (MT Newswires) -- Booking Holdings ( BKNG ) makes a "strong case" for being a "durable" brand, with its Q3 exceeding expectations due to robust demand in European alternative accommodations, RBC Capital Markets said in a report emailed Friday.

Booking reported Q3 adjusted earnings late Wednesday of $83.89 per diluted share on revenue of $7.99 billion. Analysts polled by Capital IQ expected $77.38 and $7.63 billion, respectively.

"The question from here, if Booking is to see further multiple expansion, is whether investors will give it more credit for its brand and less discount for its reliance on lead gen," RBC said. "To us, this quarter makes a strong case for the former given room night upside with no changes to marketing spend, rising mobile app mix and strong supply additions," it added.

The company's Q3 gross bookings grew more than expected, driven by growth in room nights due to a better-than-expected recovery in Europe from August, according to the note.

Given the company's more than 50% exposure to Europe and marketing spend, "Booking makes a strong case for being that durable brand," with increased mobile app usage contributing to the mid-50% range of bookings, RBC said.

RBC kept its outperform rating on Booking and raised its price target to $5,250 from $3,900.

Shares of the company were up 1.6% in recent Friday trading.

Price: 4749.39, Change: +73.14, Percent Change: +1.56