Morgan Stanley initiated coverage on the online travel sector.
The bank named Booking Holdings its preferred pick with an Overweight rating. Analysts established a $230 price target for the company.
Morgan Stanley views artificial intelligence as a growth opportunity for online travel agencies rather than a threat. Analyst Matthew Cost cited the company's extensive portfolio of 4.7 million unique properties. Booking Holdings also maintains a strong direct booking mix in the mid-60% range.
The bank assigned an Equal-weight rating to Airbnb. Morgan Stanley issued an Underweight rating for competitor Expedia.