Airbnb Analyst Raises Price Target by 16.7%, Maintains Hold Rating

Baird's Colin Sebastian raised their price target on Airbnb (NASDAQ: ABNB) by 16.7% from $120 to $140 on 2023/08/04. The analyst maintained their Hold rating on the stock.

Sebastian's assessment comes after Airbnb released its Q2 2023 earnings report on August 3rd. The report showcased strong financial performance, with the company surpassing expectations in several key metrics. Airbnb reported earnings per share (EPS) of $0.98, beating the Zacks Consensus Estimate by an impressive 27.27%. Additionally, the company's revenue of $2.48 billion exceeded expectations by 2.81%.

The Q2 2023 results demonstrate Airbnb's resilience in the face of ongoing challenges in the travel sector. Sebastian acknowledges that while it's difficult to predict demand trends beyond the next few months, Airbnb's strong brand, superior competitive position, and fast pace of product development should continue to drive its success.

In terms of the macro outlook for the travel sector, Baird is incrementally positive, as concerns around consumer travel demand are proving too pessimistic. This suggests that Sebastian believes the industry's recovery is more robust than initially anticipated.

During the earnings call, Airbnb's Chairman, CEO & Co-Founder Brian Chesky highlighted several positive trends. First, guest demand remained strong, with active bookers growing in every region and an increase in first-time bookers compared to the previous year. Second, guests are traveling farther, as cross-border nights booked increased by 16% in Q2 2023 compared to the same period in 2022. Chesky also emphasized the growing trend of guests staying longer on Airbnb, indicating flexibility in living and working arrangements.

Other analysts also provided updates on Airbnb on August 4th. Credit Suisse's Stephen Ju raised their price target by 10% to $150 and maintained a Hold rating on the stock. Barclays' Mario Lu increased their price target by 3.7% to $136, also maintaining a Hold rating. Mizuho's James Lee raised their price target by 3.4% to $145 and maintained a Hold rating as well.

The overall analyst sentiment towards Airbnb remains mixed. Currently, 38.9% of top-rated analysts rate ABNB as a Strong Buy or Buy, while 50% consider it a Hold. On the other hand, 11.1% either recommend or strongly recommend selling the stock.

Looking ahead, analysts forecast that Airbnb's upcoming year will deliver earnings per share (EPS) of $3.83. If these predictions hold true, it would represent a 6.3% increase on a year-over-year basis.

Since the release of Airbnb's latest quarterly report, the stock price has experienced a slight decline of 0.5%. However, it's important to note that over the past year, the stock has seen substantial growth, with a 17.6% increase. During this period, Airbnb has outperformed the S&P 500, which has seen a 7.9% rise.

Baird analyst Colin Sebastian is ranked among the top 3% of Wall Street analysts by WallStreetZen. With an average return of 16.9% and a win rate of 64.6%, Sebastian specializes in sectors such as Consumer Cyclical and Industrials.

Airbnb, Inc. operates a platform that connects hosts and guests worldwide, allowing them to book stays and experiences. The company's marketplace model primarily offers private rooms, primary homes, and vacation homes. Founded in 2007 and headquartered in San Francisco, California, Airbnb has grown into a global leader in the travel industry.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.