Booking (BKNG) is navigating the industry's AI "agent" debate from a position of strength, Wedbush Securities said in a research note Thursday, pointing to the company's scale, diversified supply base and accelerating product innovation as durable advantages.

Wedbush noted Q4 gross bookings rose 15.9% year over year to $43 billion, with room nights up 9.2%.

Adjusted EBITDA of $2.2 billion beat expectations as demand accelerated in the US and Asia. First-quarter gross bookings and revenue outlook were above consensus, while adjusted EBITDA growth of about 12% at the midpoint trailed prior estimates due to higher reinvestment.

The company's management also approved a 25-for-1 stock split effective April 2 and is progressing cost initiatives expected to deliver about $550 million in annual run-rate savings by the end of 2026. The investment firm said valuation remains attractive and views Booking as the best-positioned online travel agency amid AI disruption.

Wedbush maintained its outperform rating while lowering its price target to $5,300 from $5,500.

Shares of Booking were down more than 8% in recent trading.

Price: 3913.36, Change: -356.64, Percent Change: -8.35