Airbnb (ABNB) Price Target Raised by DA Davidson Analyst on Bullish Outlook

DA Davidson's Tom White raised their price target on Airbnb (NASDAQ: ABNB) by 15.7% from $140 to $162 on 2023/08/04. The analyst reiterated their Strong Buy rating on the stock.

In a research note, White highlighted Airbnb's strong Q2 2023 earnings, which were reported on August 3. The company's earnings beat expectations, with EPS of $0.98, exceeding the Zacks Consensus Estimate by 27.27% and Q2 2022's earnings by 75%. Additionally, Airbnb's revenue of $2.48 billion surpassed the Zacks Consensus Estimate by 2.81% and Q2 2022's revenue by 18.1%.

White expressed optimism about the underlying travel demand trends, stating that he believes they will remain strong. He also noted Airbnb's accelerating supply growth, with supply rising to 18% in Q2. Furthermore, White highlighted management's improved FY 2023 EBITDA margin guide as a reason for his bullish outlook.

During the earnings call, Airbnb's Chairman, CEO & Co-Founder Brian Chesky shared positive business trends. He mentioned that guest demand at Airbnb remained strong, with active bookers growing in every region and an increase in first-time bookers compared to the previous year. Chesky also noted that guests are traveling farther, with cross-border nights booked increasing by 16% in Q2, and the recovery of Asia Pacific being particularly encouraging.

Other analysts who updated their ratings on August 4 include Credit Suisse's Stephen Ju, Baird's Colin Sebastian, and Barclays's Mario Lu. Ju raised the price target by 10% to $150 and maintained a Hold rating on the stock. Sebastian raised the price target by 16.7% to $120 and also maintained a Hold rating. Lu raised the price target by 3.7% to $136 and maintained a Hold rating.

According to the consensus among analysts, ABNB's upcoming year is expected to deliver earnings per share (EPS) of $3.83, representing a 6.3% increase on a year-over-year basis.

Since Airbnb's latest quarterly report on August 3, the stock price has declined by 0.5%. However, on a year-over-year basis, the stock has gained 17.6%, outpacing the S&P 500, which saw a 7.9% increase during the same period.

It is worth noting that DA Davidson analyst Tom White is ranked in the top 30% of Wall Street analysts by WallStreetZen. With an average return of 0.8% and a win rate of 43.9%, White specializes in the Industrials and Real Estate sectors, among others.

Airbnb, Inc., headquartered in San Francisco, California, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company's marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences, primarily offering private rooms, primary homes, or vacation homes.

With 38.9% of top-rated analysts currently rating ABNB as a Strong Buy or Buy, 50% as a Hold, and 11.1% recommending or strongly recommending selling the stock, it is clear that there is a range of opinions among analysts regarding Airbnb's future performance. Investors will be closely watching the company's ability to sustain its growth and capitalize on the recovering travel industry.

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