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Bernstein SocGen Group reiterated its outperform rating and $165.00 price target on Airbnb Inc . (NASDAQ:ABNB) on Monday, despite acknowledging the company’s premium valuation compared to competitors. According to InvestingPro data, ABNB currently trades at an EV/EBITDA multiple of 28.87x, reflecting its premium positioning in the market.
The research firm noted that Airbnb trades at a 45% premium on ex-SBC EBITDA compared to its nearest peer, Booking Holdings (NASDAQ:BKNG), despite having 20% lower GAAP margins in the first quarter and no apparent growth advantage currently. The company maintains impressive gross profit margins of 83.05%, as reported in InvestingPro’s latest financial health assessment.
Bernstein defended its bullish stance by pointing out that first-quarter results are seasonally skewed, and full-year GAAP profit before tax margins are now nearly identical between Airbnb and its competitors.
The firm explained that Airbnb’s valuation premium can be justified by its higher free cash flow conversion (28%) and slightly higher consensus growth outlook (17%), suggesting the company is appropriately valued based on current estimates.
Bernstein’s optimism stems from its view that Airbnb’s multiple is primarily influenced by expected mid-term revenue growth rates, which consensus currently places at approximately 9.5%, despite first-quarter growth of 11% when adjusted for calendar effects and potential acceleration expected from core markets, non-core segments, and new verticals. The company’s strong free cash flow of $4.38 billion supports this outlook, while actual revenue growth stands at 9.68% over the last twelve months. For deeper insights into ABNB’s valuation metrics and growth potential, investors can access the comprehensive financial analysis available on InvestingPro.
In other recent news, Airbnb is facing a lawsuit involving its 2025 proxy statement. The Heritage Foundation and American Conservative Values ETF have filed a suit, alleging that Airbnb excluded certain shareholder proposals from the document. Airbnb disputes these claims, stating there is no record of receiving the proposals and is open to engaging with shareholders for future meetings. Meanwhile, Truist Securities has downgraded Airbnb’s stock from Hold to Sell, adjusting its price target to $106 due to revised earnings projections. The firm now estimates Airbnb’s adjusted EBITDA for 2025 to be slightly lower than previous forecasts.
BTIG has maintained a Neutral rating on Airbnb, noting a slowdown in performance indicators compared to its peers, such as Booking Holdings and Expedia (NASDAQ:EXPE) Group. Despite the slowdown, BTIG’s estimates align with the current mid-single-digit room night growth trend. Conversely, Bernstein has reiterated an Outperform rating for Airbnb, with a price target of $185, highlighting the company’s strategic focus on growth and investment in artificial intelligence. Additionally, Spain has ordered Airbnb to remove over 65,000 listings, citing violations of housing regulations, a decision Airbnb plans to appeal.
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