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On Monday, Jefferies analyst team made a bullish move on Airbnb Inc . (NASDAQ:ABNB) by upgrading the company’s stock rating from Hold to Buy and increasing the price target to $185 from the previous $165. The upgrade reflects Jefferies’ confidence in Airbnb’s potential to gain a larger share of the lodging market and capitalize on its experiences offering. The company’s strong financial health score of "GOOD" from InvestingPro and impressive gross profit margin of 83% support this optimistic outlook.
The analysts at Jefferies see Airbnb as uniquely positioned to benefit from the growing trend of travelers seeking unique and local experiences, beyond just accommodation. They anticipate that this demand will lead to increased adoption of Airbnb’s experiences platform, which allows hosts to offer activities and tours in addition to lodging.
Moreover, Jefferies predicts that Airbnb’s revenue will be further supported by a higher take rate, primarily driven by the introduction of sponsored listings. Sponsored listings are a way for hosts to promote their properties more prominently on Airbnb’s platform, likely leading to increased visibility and bookings.
The analysis by Jefferies suggests that the intrinsic value of Airbnb’s core lodging business alone justifies the company’s current market valuation. This implies that the market is currently attributing no value to the experiences segment or the potential take rate increase, presenting a significant upside to the stock.
With the new price target of $185, Jefferies signals their belief that Airbnb’s stock has room to grow and that the company’s strategic initiatives will drive its financial performance forward. This optimistic outlook is now reflected in the upgraded Buy rating, suggesting that Jefferies sees Airbnb as an attractive investment opportunity.
In other recent news, Airbnb Inc. reported strong fourth-quarter results that exceeded expectations, with notable increases in nights booked, gross bookings, revenue, and adjusted EBITDA. The company’s guidance for the first quarter of 2025 suggests continued growth, with anticipated revenue growth between 10% and 12% when adjusted for certain factors. Analysts at DA Davidson raised Airbnb’s price target to $170, maintaining a Neutral rating, while Susquehanna increased their target to $200, keeping a Positive view. Benchmark analysts also raised their price target to $178, maintaining a Buy rating, citing Airbnb’s strong performance and strategic initiatives. Bernstein raised its price target to $185, reaffirming an Outperform rating, and highlighted Airbnb’s plans to expand its product offerings, including ventures into "living," "experiences," and "advertising." These expansions are expected to enhance Airbnb’s market position and growth trajectory. Despite some conservative forward-looking guidance attributed to calendar and foreign exchange effects, analysts remain optimistic about Airbnb’s future potential. The recent developments reflect a positive outlook from analysts, as Airbnb continues to capitalize on market opportunities and strategic growth initiatives.
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