Analyst Note
| Dan Wasiolek |Booking’s second quarter saw strong demand improvement and progress toward building out a connected trip, supporting its strengthening network advantage (source of its narrow moat). Despite incorporating an expected increase in the U.S. statutory rate to 26% from 21% starting in 2022, we plan to increase our $2,340 fair value estimate around a low-single-digit percentage to account for stronger near-term demand. We see shares of this high-quality company as undervalued.