$BKNG

Booking Holdings (BKNG) stock fell despite Morgan Stanley initiating coverage with an Overweight rating and a $230 price target, arguing AI is an opportunity, not a threat. The bank highlighted BKNG's unique properties and direct booking mix. Morgan Stanley expects online travel bookings to grow 7% annually from 2026-2030. BKNG's Q2 results showed growth in room nights and gross bookings, with raised cost-savings targets.

Wall Street analysts upgraded Credicorp (BAP) to Overweight, Paychex (PAYX) to Peer Perform, Rocket Pharmaceuticals (RCKT) to Buy, Similarweb (SMWB) to Buy, and Union Pacific (UNP) to Buy. Downgrades include Expedia (EXPE) to Underweight, Grupo Aval (AVAL) to Underweight, Hartford Financial (HIG) to Neutral, Meritage Homes (MTH) to Hold, and Nubank (NU) to Market Perform. Initiations: Airbnb (ABNB) with Equal Weight, Booking Holdings (BKNG) with Overweight, Dutch Bros (BROS) with Buy, Five9 (FIV

Analysts updated ratings and price targets for Booking Holdings (BKNG), PVH (PVH), and Texas Roadhouse (TXRH). Bernstein maintained a Hold rating on BKNG with a $188 target. Goldman Sachs kept a Buy rating on PVH with an $88 target. Wells Fargo reiterated a Buy rating on TXRH with a $230 target. Consensus targets are $235.67 for BKNG, $88.30 for PVH, and $221.50 for TXRH.

Morgan Stanley initiated coverage of online travel agencies, rating Booking Holdings (Overweight, $230 PT), Airbnb (Equal-weight, $170 PT), and Expedia (Underweight, $235 PT). The bank favors companies with unique inventory and strong direct traffic, citing AI's potential to drive high-value traffic. Morgan Stanley expects online travel bookings to grow at a 7% CAGR from 2026 to 2030, with fragmented supply becoming more valuable.

Morningstar identified 30 US-listed stocks as newly undervalued, including ServiceNow (NOW), Booking Holdings (BKNG), British American Tobacco (BTI), Stryker (SYK), and General Dynamics (GD). These stocks now have a 4-star rating, with prices below their fair value estimates. The US stock market is moderately undervalued, according to Morningstar.

Booking Holdings (BKNG) lost its appeal against the EU's decision to block its €1.63B acquisition of ETraveli. The EU court agreed the deal could strengthen Booking's dominance in hotel bookings. Booking may appeal or invest elsewhere. The company retains a strong position in online travel but may face slower growth without acquisitions.

Booking reported strong travel demand in Q2, with U.S. as its top market. Connected Trip strategy and AI initiatives are growing, with connected bookings making up a low-double-digit share. The company achieved $100 million in savings, reduced customer-service costs, and repurchased $7.3 billion in stock.

The European Affordable Housing Act restricts short-term rentals, impacting companies like Airbnb and Booking.com. Italy's competition authority accuses Booking of prioritizing listings with higher commission rates, violating consumer protection rules.

Booking Holdings (BKNG) is considering an appeal after the EU's General Court upheld a veto on its acquisition of ETraveli Group. The court agreed with the 2023 European Commission decision, stating the acquisition would strengthen Booking's market position and harm competition. Booking disagrees and may appeal to the European Court of Justice. The deal was valued at approximately €1.63 billion.

Global markets are mixed, with stocks and bonds falling as crude oil surges. The 10-year T-note yield rose to a 2.75-year high of 4.849%. Chipmakers and energy producers gained, while ServiceTitan (TTAN) fell over 30% after a larger-than-expected Q2 loss. Casys General Stores (CASY) dropped 14% due to a lower-than-expected Q1 gross margin. Meta Platforms (META) rose 6% on positive AI assistant reviews.