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Investing.com - Cantor Fitzgerald raised its price target on Airbnb Inc . (NASDAQ:ABNB) to $130.00 from $100.00 on Wednesday, while maintaining an Underweight rating on the stock. Currently trading at $139.43, Airbnb shows strong financial health with an "GREAT" overall score according to InvestingPro analysis, though the stock appears slightly overvalued based on Fair Value calculations.
The firm expects Airbnb to report second-quarter 2025 gross bookings of $22.5 billion, representing 6% year-over-year growth excluding foreign exchange effects. This forecast aligns with both street estimates and the company’s previous guidance. The company maintains impressive gross profit margins of 83% and generated $4.4 billion in levered free cash flow over the last twelve months.
Cantor Fitzgerald projects room night growth of 6% year-over-year for Q2, showing a 2-point deceleration on an 80 basis point easier comparison. EBITDA margins are expected to remain flat year-over-year at 32.3%, with operational efficiencies offset by new investments in sales, marketing, and product development for the re-launched Experiences business. Get access to 10+ additional exclusive InvestingPro Tips and comprehensive analysis in our Pro Research Report.
For the third quarter of 2025, the firm forecasts room night and bookings growth of 6% and 7% year-over-year respectively, consistent with its Q2 estimates. The analysts anticipate Airbnb’s guidance will closely match these projections.
Cantor Fitzgerald expects Airbnb’s profitability guidance to reflect additional investments in its Experiences segment, resulting in margin compression in the second half of 2025, in line with the company’s previous guidance for sharper margin declines in that period.
In other recent news, Booking Holdings (NASDAQ:BKNG) Inc. has expanded its tours, attractions, and experiences inventory by 28% over the past seven months, as reported by DA Davidson. This growth puts Booking.com’s listings at approximately 84% of Viator’s total available offerings, highlighting its competitive edge in the market. Meanwhile, Airbnb Inc. has been in the spotlight with several developments. Truist Securities downgraded Airbnb’s stock from Hold to Sell, lowering the price target to $106.00 and slightly adjusting earnings projections for the upcoming years. The firm’s revised estimate for Airbnb’s 2025 adjusted EBITDA is now $4,149 million, down from the previous $4,241 million.
In a separate note, BTIG maintained a Neutral rating on Airbnb, citing a slowdown in performance indicators compared to its peers like Booking Holdings and Expedia (NASDAQ:EXPE) Group. Additionally, Airbnb is facing a lawsuit filed by the Heritage Foundation and American Conservative Values ETF, concerning alleged omissions in its 2025 proxy statement. Despite the legal proceedings, Airbnb has disputed the claims, stating it did not receive the shareholder proposals in question. On a more positive note, Bernstein SocGen Group reiterated an outperform rating for Airbnb, maintaining a $165.00 price target, despite acknowledging its premium valuation against competitors.
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