Benchmark cuts Airbnb stock price target to $155, maintains Buy

Published 02/05/2025, 17:18
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On Friday, Benchmark analyst Daniel Kurnos adjusted the price target for Airbnb Inc . (NASDAQ:ABNB) shares to $155, down from the previous target of $178. This target sits within the broader analyst range of $95 to $200, with the company currently valued at $77.1 billion. Despite the reduction, the firm continues to endorse a Buy rating for the company’s stock. Kurnos noted that the recent quarterly performance and guidance from Airbnb unfolded as anticipated, but underscored that the company’s upcoming Summer Release and renewed focus on experiences could mark a pivotal phase. According to InvestingPro data, Airbnb maintains impressive gross profit margins of 83% and holds more cash than debt on its balance sheet.

Airbnb is poised to reintroduce its experiences offering in the near future, a move that Kurnos believes could significantly influence the company’s trajectory. Additionally, Airbnb seems more willing to consider adding traditional hotel inventory to its platform, a shift from its original model. The growth rate in non-core markets is currently double that of core markets, which presents both opportunities and challenges for Airbnb.

The analyst acknowledged two prevailing schools of thought regarding Airbnb’s strategy. One perspective suggests that Airbnb has several large, untapped markets to explore, benefiting from a margin profile that is more robust than expected. The other view posits that Airbnb is expanding into new areas because it is losing momentum in its primary business, with competitors making substantial gains in its dominant markets.

While skepticism seems to be the dominant sentiment at present, Kurnos suggested that Airbnb’s stock might be undervalued at its current price, potentially making the case for investment more compelling. This view aligns with InvestingPro analysis, which indicates the stock is currently trading below its Fair Value. He also mentioned that the prospect of sponsored listings, although still in development, should not be dismissed, as the value of Airbnb’s extensive reach and direct traffic could be underestimated by the market. InvestingPro subscribers have access to 8 additional key insights about Airbnb’s financial health, which has received a "GREAT" overall score.

Kurnos concluded with an optimistic outlook for Airbnb, suggesting that despite potential challenges, the company is more likely to experience accelerating growth and benefit from a stronger catalyst roadmap over the next few years. The company’s strong financial position is evidenced by its healthy current ratio of 1.69 and return on equity of 32%. For deeper insights into Airbnb’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro.

In other recent news, Airbnb Inc. reported first-quarter results for 2025, with earnings before interest, taxes, depreciation, and amortization (EBITDA) surpassing expectations by $60 million. Revenue and bookings met market expectations, although there was a noted softness in the U.S. market. Cantor Fitzgerald adjusted its price target for Airbnb to $100, maintaining an Underweight rating, while DA Davidson upheld a Buy rating with a $155 target, citing Airbnb’s resilience despite U.S. market challenges. Evercore ISI lowered its price target to $145, maintaining an In Line rating, and highlighted the company’s strategic focus on traditional hotel offerings and the relaunch of its Experiences platform. Goldman Sachs increased its price target to $139, maintaining a Neutral rating, and noted positive demand trends in Latin America and the Asia-Pacific region. JMP Securities kept a Market Perform rating, acknowledging Airbnb’s strong position in the travel industry amid macroeconomic uncertainties. Airbnb’s management remains confident in its strategic plans for 2025, with anticipated new product launches and a focus on maintaining a 34.5% EBITDA margin.

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