Booking Holdings: Wedbush cuts rating, says Europe exposure to hurt

trivago NV

22/03/2019 11:47

** Wedbush downgrades online travel and hotel booking
company  BKNG.O  to "neutral" from "outperform", says BKNG's
reliance on Europe could be headwind in the near-term
    ** Says its previous investment thesis on BKNG centered on
co's dominant position in Europe, and superior profits that go
hand in hand with such a position
    ** Co's Q4 profit reported on Feb. 28 beat estimates, while
revenue was in line; it forecast weakness in core European
markets to weigh on Q1 earnings  urn:newsml:reuters.com:*:nL3N20N5BU
    ** "While we continue to believe in favorability of European
OTA exposure in long-term, this exposure is likely to represent
a liability during 2019, as it could amplify both earnings
revision risk and multiple compression risk" - Wedbush
    ** Says Trivago  TRVG.O  and BKNG have the maximum exposure
to weakness in Europe with respect to online travel
    ** Telsey Advisory Group also downgrades BKNG due to weaker
European economic outlook  urn:newsml:reuters.com:*:nL3N2162H6
    ** Wedbush lowers earnings and EBITDA assumptions for 2019
and 2020; cuts price target to $1,850 from $2,000
    ** Stock up 3.02 pct YTD
        

 (Reporting By Geetha Panchaksharam)
 ((geetha.panchaksharam@thomsonreuters.com))