Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - PhillipCapital upgraded Airbnb (NASDAQ:ABNB) from Reduce to Neutral on Monday, while raising its price target to $127.00 from $112.00. According to InvestingPro data, analyst targets for the stock range from $96 to $200, with 8 analysts recently revising their earnings expectations upward.
The upgrade comes after recent price performance in Airbnb shares, according to PhillipCapital, though the firm’s revenue estimates for fiscal year 2025 remain unchanged. The stock has experienced a 7.59% decline over the past week, while maintaining impressive gross profit margins of 83.23%.
PhillipCapital maintained its weighted average cost of capital (WACC) at 7.0% but increased the terminal growth rate to 3.5% from 3.0%, citing stabilizing travel demand as the primary factor.
The firm expects modest sales growth through 2025, driven by stable travel demand and strong growth in the Asia Pacific and Latin America regions.
New initiatives from Airbnb, such as local experiences, are not expected to scale and contribute meaningfully to revenue until fiscal year 2026, according to PhillipCapital’s analysis.
In other recent news, Airbnb has seen a variety of analyst actions following its second-quarter performance. TD Cowen raised its price target for Airbnb to $150, highlighting the company’s 7.4% increase in nights booked, which surpassed expectations. Benchmark maintained its Buy rating with a $155 price target, noting Airbnb’s growth in nights and seats, which may meet market whisper numbers despite guidance challenges. Meanwhile, Cantor Fitzgerald lowered its price target to $110 due to growth concerns, maintaining an Underweight rating. JPMorgan increased its price target to $130, observing that the second-quarter results were in line with investor expectations and noting progress in Airbnb’s business expansion. Bernstein reiterated an Outperform rating with a $165 price target, emphasizing Airbnb’s 10.5% revenue growth in constant currency terms despite macroeconomic challenges. These developments reflect varied analyst perspectives on Airbnb’s financial performance and future potential.
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