TD Cowen Analyst Lowers Price Target on Airbnb (ABNB) Despite Positive Q2 Results

TD Cowen's Kevin Kopelman lowered their price target on Airbnb (NASDAQ: ABNB) by 8.2% from $158 to $145 on 2023/08/04. The analyst maintained their Buy rating on the stock.

After reviewing Airbnb's Q2 2023 earnings report on 2023/08/03, Kopelman summed up by saying that Q2 finished strong, and management guided for "modestly accelerating bookings."

For Q2 2023, Airbnb reported impressive results. Their earnings per share (EPS) of $0.98 surpassed the Zacks Consensus Estimate by 27.27% and grew by 75% compared to the same quarter in 2022. Additionally, the company's revenue of $2.48 billion exceeded the Zacks Consensus Estimate by 2.81% and grew by 18.1% compared to Q2 2022's revenue of $2.8 billion. The adjusted EBITDA margin for the quarter was 44%, slightly down from the previous quarter's 34%. Furthermore, Airbnb reported 115.1 million nights and experiences booked, representing an 11% year-over-year increase, and a Gross Booking Value (GBV) of $19.1 billion, up 13% year-over-year.

Looking ahead to Q3 2023, Airbnb's management provided optimistic guidance. They expect revenue between $3.3 billion and $3.4 billion, indicating a growth rate of 14% to 18% year-over-year. The company anticipates that revenue growth will outpace the growth in nights and experiences booked. Additionally, Airbnb aims to increase its adjusted EBITDA margin from Q3 2022's 51%.

During the earnings call, Chairman, CEO & Co-Founder Brian Chesky highlighted several positive trends for the company. He noted that guest demand remained strong, with active bookers growing in every region and an increase in first-time bookers compared to the previous year. Chesky also mentioned that guests are traveling farther, with cross-border nights booked experiencing a 16% increase compared to the previous year. The recovery in Asia Pacific, where inbound international travel increased by 80% compared to the same period last year, was particularly encouraging. Lastly, Chesky stated that guests are staying longer on Airbnb, reflecting the flexibility in where people live and work.

In addition to TD Cowen's Kevin Kopelman, other analysts also updated their ratings for Airbnb on 2023/08/04. Credit Suisse's Stephen Ju raised their price target by 10% to $150 and maintained a Hold rating on the stock. Baird's Colin Sebastian raised their price target by 16.7% to $120 and also maintained a Hold rating. Barclays's Mario Lu raised their price target by 3.7% to $136 and maintained a Hold rating as well.

As for the consensus among analysts, 38.9% of top-rated analysts currently rate ABNB as a Strong Buy or Buy, while 50% see it as a Hold. On the other hand, 11.1% either recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that ABNB will deliver earnings per share (EPS) of $3.83 for the upcoming year. If the analysts' predictions hold true, this would represent a 6.3% year-over-year increase in EPS.

Since Airbnb's latest quarterly report on 2023/08/03, the stock price has experienced a slight decline of 0.5%. However, when compared to the previous year, the stock has seen a substantial increase of 17.6%. During this period, Airbnb has outperformed the S&P 500, which has only risen by 7.9%.

TD Cowen analyst Kevin Kopelman has a strong track record and is ranked in the top 30% out of 4,288 Wall Street analysts by WallStreetZen. With an average return of 4.4% and a win rate of 53.3%, Kopelman specializes in the Industrials and Technology sectors, among others.

Airbnb, Inc. is a global online marketplace that connects hosts and guests to book stays and experiences. The company offers various accommodation options, including private rooms, primary homes, and vacation homes. Founded in 2007 and headquartered in San Francisco, California, Airbnb operates on a platform that enables hosts to offer their spaces and experiences to guests worldwide.

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