Wedbush sees long and bumpy road for online travel (NASDAQ:BKNG)

In a deep dive into the online travel sector, Wedbush Securities backs its view that Booking Holdings (NASDAQ:BKNG) has significant upside and relatively muted risk, while Expedia (NASDAQ:EXPE) represents the most upside/risk in the sector.

Analyst James Hardiman points to BKNG’s higher mix of agency bookings as a positive in terms of liquidity risk, while Expedia has $5.9B in deferred merchant bookings.

Hardiman says both TripAdvisor (NASDAQ:TRIP) and trivago (NASDAQ:TRVG) will have to work through multiple levels of cutbacks, as metasearch was already experiencing significant secular headwinds prior to the pandemic.

Wedbush has a Neutral rating on all four online travel stocks with the industry seen as being on a long and bumpy road to recovery.

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