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On Friday, DA Davidson confirmed its positive stance on Airbnb Inc . (NASDAQ:ABNB), sustaining a Buy rating and a $155.00 price target for the company’s shares. The endorsement comes after Airbnb’s first-quarter results for 2025, which showed a slight underperformance in unit growth but met expectations in foreign exchange-neutral gross bookings and revenue growth. The company also exceeded forecasts for its adjusted EBITDA. According to InvestingPro data, Airbnb maintains an impressive financial health score of "GREAT," supported by robust gross margins of 83% and strong revenue growth of nearly 12% over the last twelve months.
The analyst noted that while there was some weakness in the U.S. market, which accounted for 45% of Airbnb’s 2024 revenue, the issues seemed to be related to customers delaying decisions on longer-lead time trips rather than switching to cheaper alternatives. The analyst’s statement highlighted that, in their view, Airbnb continued to increase its market share in the U.S. during the first quarter. InvestingPro analysis reveals that the company holds more cash than debt on its balance sheet, with a healthy current ratio of 1.69, indicating strong financial flexibility to navigate market fluctuations.
Airbnb’s quarterly performance demonstrated resilience despite the observed softness in the North American segment. The company’s ability to match growth expectations on a currency-neutral basis and surpass adjusted EBITDA predictions indicates a robust operational standing.
The analyst’s reiteration of the Buy rating and price target reflects confidence in Airbnb’s valuation, pegging it at 21 times the projected 2025 enterprise value to EBITDA. Based on InvestingPro’s Fair Value analysis, the stock currently appears slightly undervalued. The company’s current EV/EBITDA multiple stands at 26x, while maintaining strong profitability with a return on equity of 32%. For deeper insights into Airbnb’s valuation and 10+ additional ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.
Airbnb’s market performance and future prospects remain a focal point for investors, with DA Davidson’s analysis providing a steady viewpoint on the company’s status and potential for growth. The firm’s unchanged estimates post-earnings report signify a belief in the continued success of Airbnb’s business model and strategy, supported by the company’s strong revenue CAGR of 18% over the past five years and projected revenue growth of 10% for fiscal year 2025.
In other recent news, Airbnb Inc. reported its first-quarter 2025 financial results, showing a revenue increase to $2.3 billion, surpassing the forecasted $2.26 billion. The company’s adjusted earnings per share (EPS) also exceeded expectations, coming in at $0.24 against the anticipated $0.23. Despite this, Airbnb’s stock saw a decline in after-hours trading. Analysts from Evercore ISI adjusted their outlook on Airbnb by lowering the price target to $145 while maintaining an In Line rating, citing a mixed first-quarter earnings report and a less optimistic second-quarter outlook. Conversely, Goldman Sachs raised its price target for Airbnb shares to $139 from $131, highlighting the company’s strong financial performance and expressing confidence in its strategic positioning. JMP Securities maintained a Market Perform rating, noting Airbnb’s steady booking trends and the company’s ability to withstand macroeconomic fluctuations. Additionally, Airbnb is preparing for a significant product launch on May 13, which is expected to provide insights into the company’s growth strategies for the second half of 2025 and beyond.
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