Mizuho has upgraded Booking Holdings to Outperform, viewing recent price declines as an opportunity. The firm believes the market is overreacting to concerns about how artificial intelligence will impact the online travel sector. Analyst Lloyd Walmsley suggests that fears are overblown, citing the company's strong position and past resilience during industry shifts.

Mizuho's positive outlook stems from several factors. They anticipate that Google and OpenAI will monetize AI through an auction model, which would allow online travel agencies to compete effectively. Furthermore, the firm points to Booking's partnership with OpenAI and its status as a major Google customer, strengthening its ability to navigate the evolving search landscape.

Mizuho also highlights Booking's healthy financial profile. This includes high-single-digit gross bookings growth, margin improvement, and an expected 19% rise in adjusted earnings per share in 2026. The firm maintains a $6,000 price target on BKNG. Investors should watch how Booking leverages its partnerships to stay ahead of AI disruption.