Booking's (BKNG) consistent track record of under-promising and over-delivering remains intact with Q4 results exceeding expectations despite currency fluctuations affecting estimates, RBC Capital Markets said in a note emailed Friday.

The firm said that Booking continues to outpace its competitors in scale and growth, especially in room nights and alternative accommodations. The company added 30 million room nights year-over-year compared with Airbnb (ABNB) and Expedia (EXPE), which collectively added 21 million.

The company is increasing direct bookings to reduce dependence on paid lead generation and its direct bookings make up about 50% overall and over 60% in business-to-consumer channels, according to the note.

RBC said that the company's air travel business is growing significantly and the payments segment continues to expand with the merchant model handling 59% of bookings in 2024.

The brokerage raised its price target on Booking Holdings' stock to $5,900 from $5,250 and kept the outperform rating.

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