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On Monday, Canaccord Genuity’s Michael Graham revised the price target for Airbnb Inc . (NASDAQ:ABNB) shares, reducing it to $180 from the previous $190, while maintaining a Buy rating on the company. Currently trading at $122.51, the stock sits well below analyst targets ranging from $95 to $200. According to InvestingPro analysis, Airbnb shows strong financial health with an overall score of 3.2 (GREAT), suggesting potential resilience despite market fluctuations. Graham anticipates that Airbnb will disclose mixed results for the first quarter, noting a deceleration in gross bookings and revenue growth by approximately 6 percentage points quarter over quarter. With earnings due in just 3 days, InvestingPro data reveals impressive fundamentals, including an industry-leading gross profit margin of 83.08% and healthy revenue growth of 11.95% over the last twelve months. For deeper insights into Airbnb’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. He attributes this slowdown to the Leap Day comparison, the timing of Easter, and currency exchange headwinds.
Despite these factors, Graham expects that Airbnb’s first-quarter revenue will still show a year-over-year increase of 10-12%, aligning closely with the 11.8% growth observed in the fourth quarter. The analyst also pointed out that the economic uncertainty caused by tariffs is starting to impact travel spending. This observation is supported by several airlines, including Delta, American Airlines (NASDAQ:AAL), Southwest, and Alaska Air (NYSE:ALK), which have all withdrawn their financial guidance for 2025 in recent weeks.
Graham suggests that the diminished clarity in travel spending might be partly due to a decrease in international tourism to the United States, which he speculates could be related to negative sentiment toward the Trump Administration. However, he notes that this trend may not necessarily pose a challenge for Airbnb if travelers opt for vacations in other regions where the company has a strong presence.
In addition, Graham mentions that travel spending has shown remarkable resilience since the pandemic. Citing the March Conference Board survey, he highlights that more consumers are planning to spend on travel and vacations this year, in contrast to live entertainment and sports. This consumer behavior could potentially benefit Airbnb, as the company continues to navigate through the current economic landscape. The company’s strong financial position is evident in its current ratio of 1.69, indicating ample liquidity to meet short-term obligations. InvestingPro subscribers have access to over 10 additional key insights about Airbnb’s financial strength and market position.
In other recent news, Airbnb Inc. has experienced a series of noteworthy developments. Bernstein analysts have maintained an Outperform rating on Airbnb, keeping the price target at $185, and highlighted the upcoming FY25 Summer release event as a potential turning point for the company. They anticipate this event will introduce new features like Experiences 2.0 and a customer-facing AI feature, which could open new revenue streams. Meanwhile, Cantor Fitzgerald revised its price target for Airbnb to $101 from $130, retaining an Underweight rating, citing potential economic challenges and a slowdown in growth. TD Cowen reiterated a Buy rating with a $175 price target, emphasizing the strategic potential of Airbnb’s "Hotel Tonight" brand and its new 10% rewards initiative.
JMP analysts maintained a Market Perform rating, acknowledging Airbnb’s international reach as a buffer against the dip in U.S. tourism, while expressing concerns about the company’s ambitious investment plans. Citizens JMP also held its Market Perform rating, noting Airbnb’s global presence and cost-effective options for group travel as strengths. Despite these varied perspectives, the analysts agree that Airbnb’s expansion into new business areas, with investments between $200 million and $250 million, could impact growth and profit margins. These developments reflect Airbnb’s ongoing efforts to adapt to changing market conditions and consumer behaviors.
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