Keybanc starts coverage on top travel firms Booking and Expedia

[Hands, person and tablet screen with booking on website for travel, activity choice and information of ecommerce. Digital, online app and reading hobby, planning and holiday location for decision]
Jacob Wackerhausen/iStock via Getty Images

* KeyBanc Capital Markets initiated coverage on Booking Holdings (NASDAQ:BKNG [https://seekingalpha.com/symbol/BKNG]) and Expedia (NASDAQ:EXPE [https://seekingalpha.com/symbol/EXPE]).
* BKNG has an investment rating of "overweight" and a price target of $6,450, implying an upside of 23.3%; EXPE has been assigned a neutral-equivalent rating, i.e., "sector weight," and does not have a PT.
* On Booking, the research firm likes the company's strong track record of executing against strategic initiatives; its global scale and marketing efficiency, which drives margin; "significant" capital returns to shareholders; and its niche supply and large loyalty program.
* However, it noted that BKNG is underpenetrated in the U.S., has a maturing growth profile, and faces rising competitive pressures and regulatory scrutiny.
* For Expedia, the research firm praised its well-known consumer brands and high-growth B2B business, among other things. Negatives for EXPE include tech and platform challenges, rising competitive pressures, and outsized exposure to the U.S., among other things.

MORE ON BOOKING HOLDINGS, EXPEDIA

* Booking: Growing Market Share And Traveler Wallet Share In Alternative Accommodations And Through Its Connected Trip Vision [https://seekingalpha.com/article/4830971-booking-growing-market-share-and-traveler-wallet-share-in-alternative-accommodations-and-through-its-connected-trip-vision]
* Booking Holdings: Short-Term Risks Create Long-Term Opportunities [https://seekingalpha.com/article/4830846-booking-holdings-short-term-risks-create-long-term-opportunities]
* Expedia Group: Valuation Nearing Its Peak After The Rally But Still Justified [https://seekingalpha.com/article/4827614-expedia-stock-valuation-nearing-peak-after-rally-still-justified]
* Weekly S&P 500 consumer cyclical movers: Best Buy takes lead, Ulta Beauty bottoms [https://seekingalpha.com/news/4505137-weekly-sp-500-consumer-cyclical-movers-best-buy-takes-lead-ulta-beauty-bottoms]
* ClearBridge Value Strategy adds AMZN, TSM, CRM, exits INTC, ABBV, EXPE among Q3 moves [https://seekingalpha.com/news/4503652-clearbridge-value-strategy-adds-amzn-tsm-crm-exits-intc-abbv-expe-among-q3-moves]