BMO Capital raises Airbnb stock price target to $124 on solid Q2 results

Published 07/08/2025, 13:46
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Investing.com - BMO Capital has raised its price target on Airbnb Inc . (NASDAQ:ABNB) to $124.00 from $121.00 while maintaining a Market Perform rating on the stock. According to InvestingPro data, analyst targets for the stock range from $96 to $200, with 4 analysts recently revising their earnings estimates upward.

The price target increase follows Airbnb’s second-quarter 2025 performance, which BMO described as "solid" with revenue and adjusted EBITDA exceeding consensus estimates by 2.5% and 5.5%, respectively. The company maintains impressive gross profit margins of 83.2% and holds more cash than debt on its balance sheet, according to InvestingPro analysis.

Airbnb’s third-quarter 2025 revenue guidance of $4.06 billion (at the midpoint) aligns with Street expectations, supported by an acceleration in nights booked from April through July.

BMO highlighted Airbnb’s reintroduction of Experiences to its platform, noting this could provide "a meaningful tailwind" to the business if the company successfully drives solid attachment rates to its core accommodations offerings.

Despite the positive developments, BMO maintained its Market Perform rating, citing regulatory risks in many markets as "a key overhang to the longer-term model."

In other recent news, Airbnb Inc. reported its second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.03, compared to the forecasted $0.93. The company’s revenue also exceeded projections, reaching $3.1 billion against an anticipated $3.03 billion. Despite these positive financial results, Airbnb’s growth in Nights and Seats was 7%, slightly trailing behind competitor Booking (NASDAQ:BKNG)’s 8% growth. UBS has responded to these developments by lowering Airbnb’s stock price target to $148, maintaining a Neutral rating due to growth concerns. Similarly, Wells Fargo (NYSE:WFC) adjusted its price target for Airbnb to $110, citing slower penetration gains in alternative accommodations within core markets and maintaining an Underweight rating. These adjustments reflect analysts’ cautious outlook on Airbnb’s growth trajectory in its primary business segment.

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