Airbnb stock rating cut to sell by Truist Securities

Published 30/05/2025, 11:50
© Reuters

On Friday, Truist Securities revised its stance on Airbnb Inc . (NASDAQ: NASDAQ:ABNB), downgrading the company’s stock from Hold to Sell. The firm also adjusted the price target for Airbnb’s shares to $106.00, a decrease from the previous target of $112.00. Currently trading at $128.36, the stock sits within a broader analyst target range of $96 to $200. The revision was accompanied by a slight change in earnings projections for the upcoming years. According to InvestingPro data, the company maintains a GOOD financial health score, despite trading at elevated multiples.

Truist Securities now estimates Airbnb’s adjusted EBITDA for the year 2025 to be $4,149 million, a slight decrease from the initial forecast of $4,241 million. Concurrently, the earnings per share (EPS) estimate for 2025 has been marginally adjusted to $4.23 from the earlier prediction of $4.22. Looking further ahead to 2026, the firm’s adjusted EBITDA projection has been lowered to $4,542 million from the former estimate of $4,658 million, while the EPS forecast has been revised upward to $4.95 from $4.80. The company currently maintains impressive gross profit margins of 83%.

The new price target of $106 is anchored on a constant multiple of 20.0 times the firm’s projected adjusted EBITDA for 2026. Truist Securities highlighted that Airbnb’s stock is currently trading at 29.9 times and 25.0 times their 2025 and 2026 adjusted EBITDA estimates, respectively. This valuation led to the decision to downgrade the rating and reduce the price target for Airbnb’s shares.

The adjustments made by Truist Securities reflect their latest expectations for Airbnb’s financial performance in the coming years. The decision to downgrade the stock and lower the price target is based on their analysis of the company’s earnings potential relative to its current market valuation.

In other recent news, Airbnb Inc. has been the focus of various analyst assessments and regulatory actions. BTIG analyst Jake Fuller maintained a Neutral rating on Airbnb, citing a slowdown in certain performance indicators compared to competitors like Booking Holdings (NASDAQ:BKNG) and Expedia (NASDAQ:EXPE) Group. Meanwhile, Bernstein reiterated an Outperform rating with a $185 price target, highlighting Airbnb’s strategic focus on growth and investment in artificial intelligence to enhance customer service. DA Davidson also maintained a Buy rating with a $155 target, following Airbnb’s announcement of its Summer 2025 product release, which includes new services and a redesigned app.

Conversely, Cantor Fitzgerald confirmed an Underweight rating with a $100 target, noting the company’s high valuation relative to peers despite ongoing innovation. In regulatory news, Spain has ordered Airbnb to remove over 65,000 listings that allegedly violate local regulations, a move that Airbnb plans to appeal. The Spanish government’s action is part of a broader effort to address the country’s housing crisis. These developments reflect varying perspectives on Airbnb’s strategic initiatives and regulatory challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.