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Investing.com - Bernstein has reiterated an Outperform rating and $165.00 price target on Airbnb Inc . (NASDAQ:ABNB) ahead of the company’s second-quarter earnings report scheduled for Wednesday. According to InvestingPro data, analyst targets for ABNB range from $96 to $200, with 4 analysts recently revising their earnings estimates upward for the upcoming period.
The firm sees no reason to adjust estimates following Booking Holdings (NASDAQ:BKNG)’ recent results, maintaining its projection of 6% night growth for Airbnb, slightly below the consensus estimate of 7%. Bernstein notes that while U.S. weakness was flagged in Booking’s report, the U.S. market represents only about 25% of Airbnb’s volume. The company’s impressive 83% gross profit margin and strong revenue growth of 9.7% in the last twelve months support this optimistic outlook.
Bernstein suggests that Booking’s unexpected slowdown in alternative accommodations should have limited impact on Airbnb due to differences in product offerings, geographic focus, and supply constraints between the two companies.
The firm expects Airbnb to continue its perfect record of EBITDA beats since its IPO, with third-quarter EBITDA guidance potentially surpassing the consensus expectation of nearly flat growth. Bernstein points to positive factors including the lapping of initial growth investments and favorable foreign exchange impacts on margins.
With Airbnb shares having dropped 9% leading up to the earnings announcement, Bernstein believes investor sentiment is appropriately cautious, creating potential for a positive market reaction to any favorable surprises in the report. InvestingPro analysis shows the company maintains strong financial health with a "GOOD" overall rating, and subscribers can access over 10 additional exclusive ProTips and detailed valuation metrics in the comprehensive Pro Research Report.
In other recent news, Airbnb Inc. has been the subject of several analyst reports and legal proceedings. Bernstein SocGen Group has reiterated its Outperform rating on Airbnb, maintaining a price target of $165. The firm suggests that Airbnb could enhance growth through strategic partnerships to expand its service offerings. Meanwhile, Cantor Fitzgerald has adjusted its price target for Airbnb to $130 from $100, while keeping an Underweight rating. The firm projects Airbnb’s second-quarter 2025 gross bookings to grow by 6% year-over-year, aligning with street estimates and the company’s guidance.
In legal developments, Airbnb is facing a lawsuit filed by the Heritage Foundation and American Conservative Values ETF. The lawsuit alleges that Airbnb omitted certain shareholder proposals from its 2025 proxy statement. Airbnb has countered these claims, stating there was no record of receiving the proposals in question. Despite the legal challenge, Airbnb has provided the complaint and exhibits for review. These developments come amid a competitive landscape where Airbnb trades at a premium compared to Booking Holdings, despite having lower GAAP margins.
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