Wedbush Securities on Tuesday initiated coverage on multiple stocks in the Online Travel and Mobility sector, signaling potential upside for all of them, with Booking Holdings Inc (NASDAQ: BKNG) being assigned to the Wedbush Best Ideas List.
The Wedbush Analyst: Scott Devitt initiated coverage on the following stocks, with respective price targets.
- Booking Holdings: Outperform rating, $3,060 price target.
- Uber Technologies Inc (NYSE: UBER): Outperform rating, $46 price target
- Airbnb Inc (NASDAQ: ABNB): Neutral rating, $130 price target
- Clear Secure Inc (NYSE: YOU): Neutral rating, $27 price target
- DoorDash Inc (NYSE: DASH): Neutral rating, $75 price target
- Expedia Group Inc (NASDAQ: EXPE): Neutral rating, $116 price target
- LYFT Inc (NASDAQ: LYFT): Neutral rating, $10 price target
On Booking, Devitt said despite the turbulence of the industry, the company maintains a robust position as the leading online travel agency worldwide, anticipating more than 1 billion room nights through its platform in 2023.
Booking's strong points include a leading competitive position, strong margins, substantial free cash flow generation, diversified geographic mix and disciplined capital allocation with $22 billion remaining for repurchases.
For Uber, Wedbush said the company was primed for sustainable long-term growth with catalysts including deeper international penetration, vertical expansion into grocery and retail, and cross-selling opportunities, reinforced by Uber One, the company's membership program.
Airbnb, while having strong long-term growth potential, was seen as a more cautious bet given its unique exposure to longer stays, alternative accommodation, and lower-density non-urban stays during the pandemic, which may decrease in a return to normalcy.
On CLEAR, DoorDash, Expedia and Lyft, Devitt said while the companies have potential, future normalization risks and specific industry dynamics demand a more careful approach.