Cantor Fitzgerald cuts Airbnb price target to $101 from $130

On Wednesday, Cantor Fitzgerald analyst Deepak Mathivanan revised the price target for Airbnb Inc . (NASDAQ: NASDAQ:ABNB) stock, reducing it to $101 from the previous $130, while maintaining an Underweight rating on the company’s shares. The adjustment follows the firm’s analysis of Airbnb’s first-quarter performance and expectations for the remainder of the year. According to InvestingPro data, Airbnb maintains impressive gross profit margins of 83% and has demonstrated revenue growth of nearly 12% over the last twelve months.

Mathivanan stated that the forecast for Airbnb’s first-quarter revenue nights (RN) and implied bookings growth aligns with the midpoint of the company’s previous guidance. However, he indicated that there could be potential downside risks due to recent economic fluctuations in the U.S. The analyst anticipates a 2-3 percentage point slowdown in the second quarter of 2025 and expects a more pronounced deceleration in the second half of the year, as travel demand may further diminish. InvestingPro analysis shows the company maintains strong financial health with an overall score of "GREAT," suggesting resilience against potential market headwinds.

Despite Airbnb’s shares underperforming recently, they continue to trade at a premium, specifically at 23 times the forecasted earnings per share (EPS) for fiscal year 2026. Mathivanan suggests that Airbnb’s premium valuation, when compared to online travel agencies (OTAs), could narrow if the company’s growth rates start to align more closely with those of its OTA counterparts. Current InvestingPro metrics support this premium valuation concern, with the stock trading at a P/E ratio of 27.3x and showing high EBITDA and revenue multiples.

This price target revision comes at a time when the travel industry faces uncertainties due to the broader economic environment. Airbnb, known for its platform that allows property owners to rent out their spaces to travelers, has been navigating through the challenges of the post-pandemic travel resurgence and changing consumer behaviors.

The new price target of $101 represents a significant decrease from the previous target but reflects the analyst’s caution amidst a potentially challenging macroeconomic landscape for the company and the travel sector as a whole.

In other recent news, Airbnb Inc. has been the focus of various analyst evaluations, with a mix of ratings and price targets reflecting diverse perspectives on the company’s prospects. Bernstein analysts have maintained an Outperform rating with a price target of $185, anticipating significant updates at the upcoming FY25 Summer release event, which could introduce new features and revenue streams. Mizuho (NYSE:MFG) Securities also reaffirmed an Outperform rating with the same price target, highlighting Airbnb’s growth potential through strategic investments and operational efficiencies. Meanwhile, TD Cowen reiterated a Buy rating with a $175 price target, emphasizing the potential of the new rewards initiative by Airbnb’s Hotel Tonight brand to enhance market engagement.

JMP analysts, however, maintained a Market Perform rating, noting Airbnb’s international reach as a buffer against declining U.S. tourism, but also expressing concerns about the company’s ambitious investment plans. Citizens JMP echoed this sentiment, with a similar Market Perform rating, underscoring the challenges and opportunities in Airbnb’s strategic diversification efforts. These recent developments indicate a cautious optimism among analysts regarding Airbnb’s ability to navigate economic headwinds and capitalize on its global presence and innovative offerings.

Investors are keeping a close watch on Airbnb’s upcoming earnings and strategic announcements, as these could significantly influence the company’s financial trajectory and market positioning. With a variety of ratings and targets, analysts seem to agree on Airbnb’s potential but remain attentive to the challenges it faces in a fluctuating travel sector.

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