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On Friday, Evercore ISI analysts adjusted their outlook on Airbnb Inc . (NASDAQ:ABNB) shares, lowering the price target from $165 to $145. The firm maintained its In Line rating for the company’s stock. This adjustment follows Airbnb’s first-quarter earnings report, which presented mixed results. According to InvestingPro data, Airbnb currently trades at $124.01, with analysis suggesting the stock is slightly undervalued based on its Fair Value assessment.
Airbnb’s first-quarter bookings, revenue, and room nights were reported to be in line with industry and Wall Street expectations. However, the company’s EBITDA exceeded forecasts, showcasing a stronger-than-anticipated performance in that area. InvestingPro data reveals impressive financial metrics, including an 83.08% gross profit margin and strong revenue growth of 11.95% over the last twelve months. Despite these results, the second-quarter outlook provided by Airbnb was less optimistic, with projected revenue and room nights falling short of market expectations. This outlook is partly attributed to a downturn in the U.S. market, particularly within budget-tier accommodations.
The analysts noted that global demand trends for Airbnb remain stable, except for the observed U.S. market softness. This trend is considered a negative indicator for other travel companies, such as Expedia (NASDAQ:EXPE) Group Inc. In addition to market observations, Evercore ISI highlighted Airbnb’s strategic moves, including its increased focus on traditional hotel offerings through its Hotel Tonight asset and the upcoming relaunch of its Experiences platform on May 13th.
While the relaunch of Experiences is seen as a significant opportunity for Airbnb, analysts do not anticipate it will have a material impact on the company’s performance within the current year. Airbnb also confirmed its long-term EBITDA margin guidance, aiming for 34.5% by FY25, indicating a steady outlook on profitability.
In other recent news, Airbnb Inc. announced its first-quarter financial results for 2025, reporting revenue of $2.3 billion, which exceeded the anticipated $2.26 billion. The company’s adjusted earnings per share (EPS) came in at $0.24, slightly above the forecast of $0.23. Airbnb’s management has provided guidance for the second quarter, projecting revenue between $2.99 billion and $3.05 billion, indicating 9-11% growth. Additionally, the company repurchased $807 million in stock during the quarter.
Goldman Sachs analyst Eric Sheridan has raised the price target for Airbnb to $139 from $131, maintaining a Neutral rating on the stock. This adjustment follows Airbnb’s strong first-quarter performance, with Adjusted EBITDA surpassing Goldman Sachs’s estimates by approximately 20%. Meanwhile, JMP Securities maintained a Market Perform rating on Airbnb, noting that the company’s adjusted EBITDA outlook was modestly above expectations.
Airbnb continues to focus on international expansion and core service improvements, with upcoming business launches expected to contribute to revenue growth over time. The company is also preparing for a significant product launch on May 13, which aims to offer insights into its strategic plans for growth. Despite some challenges in the U.S. market, particularly with longer-lead-time bookings, Airbnb remains committed to its investment plans throughout 2025.
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