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On Monday, Evercore ISI maintained a neutral stance on Airbnb Inc . (NASDAQ:ABNB) shares, keeping an In Line rating and a price target of $155.00. This target aligns with the broader analyst community’s views, as InvestingPro data shows analyst targets ranging from $85 to $170, with the stock currently trading at $135.23. InvestingPro’s analysis indicates the stock is currently trading near its Fair Value. The firm anticipates Airbnb will surpass fourth-quarter expectations, citing robust travel demand indicators and solid performance from peers such as Expedia (NASDAQ:EXPE). With impressive gross profit margins of 83% and a "GREAT" financial health score according to InvestingPro, Airbnb appears well-positioned. However, Evercore ISI also predicts that Airbnb’s initial guidance for fiscal year 2025’s EBITDA margin may fall short of current Street projections.
The firm’s analysis suggests that Airbnb’s fourth-quarter bookings, revenue, room nights, and adjusted EBITDA margin are likely to align with Street estimates, which anticipate year-over-year growth and a seasonal dip from the previous quarter. Evercore ISI’s checks within the industry and third-party data point to sustained travel interest in the fourth quarter of 2024. This sentiment is echoed by Evercore ISI’s Airlines Research Team, which has observed consistent strength in the proprietary Evercore ISI Airlines Survey and other key indicators like TSA Throughput and Hotel Occupancy.
Looking ahead to the first quarter of 2025, Evercore ISI finds the Street’s forecasts for bookings, revenue, room nights, and adjusted EBITDA margin to be within a reasonable range. With Airbnb’s earnings report due on February 13th and revenue growth of 13% in the last twelve months, investors are watching closely. However, the firm cautions that actual results might lean towards the lower end of expectations. For deeper insights into Airbnb’s financial metrics and detailed analysis, InvestingPro subscribers can access the comprehensive Pro Research Report, along with 12 additional ProTips about the company’s performance. Factors such as currency exchange rates, the timing of Leap Day and Easter, and other headwinds highlighted by Expedia could potentially dampen the outlook.
The travel industry’s performance in the fourth quarter is seen as a modest beat and bracket by Evercore ISI, suggesting that results will likely exceed the consensus estimates marginally. The firm’s commentary underscores the importance of external factors like currency appreciation and specific calendar events in shaping Airbnb’s short-term financial forecasts.
Airbnb’s stock performance and future earnings will be closely watched by investors as the company prepares to report its fourth-quarter results and provide guidance for the coming fiscal year. Evercore ISI’s assessment provides a snapshot of expectations and potential challenges that Airbnb may face in the near term.
In other recent news, Raymond (NSE:RYMD) James has reaffirmed a Strong Buy rating on Uber Technologies Inc . (NYSE:UBER) with a steady price target of $95.00. This comes amidst potential challenges such as foreign exchange impacts and adverse weather conditions. Josh Beck, the firm’s analyst, highlighted Uber’s strategic investments and the upward revision of Uber’s first-half fixed currency net mobility guidance as key factors driving the company’s growth.
On a similar note, Cantor Fitzgerald maintained an Underweight rating on Airbnb Inc. with a revised price target of $117.00. Analyst Deepak Mathivanan emphasized Airbnb’s significant investments in new market expansion, despite lagging behind its online travel agency peers. The firm awaits signs of improvement in Airbnb’s growth trajectory and the upcoming fourth-quarter earnings for 2024.
In Spain, Airbnb is under investigation for failing to remove thousands of rental listings, contributing to housing shortages and escalating real estate prices. The company could face a penalty of up to 100,000 euros or an amount equivalent to four to six times the profit generated from these practices.
Meanwhile, Booking Holdings (NASDAQ:BKNG) Inc. observed a shift in travel patterns due to inflation. American consumers are delaying their vacation planning, while European travelers are making arrangements earlier. Despite this, the company’s CFO, Ewout Steenbergen, remains optimistic about the future of the US travel market.
Lastly, Truist Securities slightly adjusted its price target for Airbnb Inc. to $123 from $124, maintaining a Hold rating on the stock. The revision follows updated earnings projections for the company for the upcoming years, with both increases and decreases in expected EBITDA and EPS for the years 2024 to 2026.
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