Bernstein reiterates Outperform rating on Airbnb stock at $165 target

Published 07/08/2025, 14:20
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Investing.com - Bernstein reiterated its Outperform rating and $165.00 price target on Airbnb Inc . (NASDAQ:ABNB) Thursday. According to InvestingPro data, analyst targets for the stock range from $96 to $200, with the company maintaining a "GOOD" overall financial health rating.

The firm cited Airbnb’s resilient performance despite challenging macroeconomic conditions, noting the company has grown revenues by 10.5% in constant currency terms. This growth is supported by impressive gross profit margins of 83.2% and a strong return on invested capital of 24%.

Bernstein highlighted Airbnb’s trailing twelve-month free cash flow conversion rate of 107%, achieved before the impact of new initiatives.

The research firm acknowledged management’s warning about potential deceleration in Q4, which could reach as much as 4%, but remains optimistic about Airbnb’s growth prospects.

Bernstein believes the stock’s current valuation, which implies approximately 9% revenue growth, is beatable based on first-half growth and acceleration opportunities in core markets, new markets, and new verticals.

In other recent news, Airbnb Inc. reported its second-quarter 2025 earnings, which exceeded analyst expectations. The company achieved an earnings per share of $1.03, surpassing the forecasted $0.93, and generated revenue of $3.1 billion, beating the projected $3.03 billion. Following these results, BMO Capital raised its price target for Airbnb to $124, citing solid performance with revenue and adjusted EBITDA exceeding consensus estimates. However, UBS lowered its price target to $148 due to growth concerns, noting that Airbnb’s Nights and Seats growth of 7% lagged behind competitor Booking (NASDAQ:BKNG)’s 8% growth. Wells Fargo (NYSE:WFC) also adjusted its price target to $110, highlighting challenges in Airbnb’s core markets and slower growth in alternative accommodations. These developments reflect a mix of optimism and caution among analysts regarding Airbnb’s future prospects.

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