Booking's (BKNG) Q2 nights booked and gross bookings exceeded

consensus benefiting from stable global demand and operating leverage, Oppenheimer said in a note on Wednesday.

The management raised its full-year outlook based on stable July travel demand and positive forward bookings despite tougher year-over-year comps in late Q3 and Q4, according to the note.

The firm said that the Q3 outlook appears conservative with nights expected to grow 3.5% to 5.5% year-over-year, while the management sees a stable foreign exchange environment and some tailwind from flight bookings.

The company is benefitting from cost efficiencies in advertising and sales while investing in artificial intelligence to drive personalization, engagement, and conversion, Oppenheimer added.

The firm has an outperform rating on Booking's stock with a $6,500 price target.

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