Morgan Stanley Upgrades Booking to Overweight with $5,500 Target After 19% EBITDA Growth
Morgan Stanley raised Booking to Overweight from Equal Weight with a $5,500 target (down from $6,150) citing robust traveler data and high-margin direct bookings. In Q4 2025, room nights rose 9% to 285 million, adjusted EBITDA jumped 19% to $2.2 billion; Transformation Program delivered $550 million in savings.
1. Morgan Stanley Upgrade
On February 24, Morgan Stanley raised its rating on Booking Holdings to Overweight from Equal Weight and set a $5,500 price target, down from $6,150. Analyst Brian Nowak cited the company’s strong traveler data collection, high-margin direct booking potential and central role in emerging agentic travel tools.
2. Q4 2025 Financial Results
In Q4 2025, room nights climbed 9% to 285 million, while gross bookings and revenue each rose 16%. Adjusted EBITDA increased 19% to $2.2 billion and adjusted earnings per share grew 17%, reflecting resilient travel demand across major regions.
3. Transformation Program Savings
Launched in November 2024, Booking’s Transformation Program has delivered $550 million in annual cost savings, reaching the high end of the company’s initial targets through operational efficiencies and streamlined processes.
4. Strategic Outlook
CEO Glenn Fogel highlighted progress in AI-driven capabilities and execution of the Connected Trip strategy, with a focus on expanding market share in Asia and the U.S. Morgan Stanley maintains that online travel agencies will remain central to the future travel ecosystem.