Jefferies cuts target on travel, e-commerce stocks due to FX headwinds

Investing.com — Jefferies warned that a strengthening U.S. dollar poses a significant risk to the top-line growth of travel and e-commerce companies with significant international exposure. Brokerage cut price target on Booking Holdings (NASDAQ:) to $4,650 from $4750, Airbnb by $4 to $136, eBay (NASDAQ:) by $1 to $49 and Expedia (NASDAQ:) to $186 from $190.

The brokerage estimated that the average revenue headwind from FX for such companies has risen to around 3% for 2025, a sharp increase from just 0.3% three months ago, largely attributed to the U.S. dollar’s recent appreciation against major currencies such as the Australian Dollar, Brazilian Real, and British Pound.

“The U.S. dollar has appreciated by 6% since mid-September and 4% over the past 3 months vs. a basket of key foreign currencies,” Jefferies note said. “Importantly, nearly two-thirds of dollar appreciation occurred after Internet names announced 3Q results, meaning guidance/consensus likely only captures a small portion of the headwind.”

The companies facing substantial FX headwinds, includes Uber (NYSE:), Booking Holdings, and Airbnb.

While the impact on EBITDA is expected to be less severe than on revenue, Jefferies cautioned that companies with lower U.S. profit margins are likely to experience a greater impact.