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On Thursday, Mizuho (NYSE:MFG) Securities sustained its positive stance on Airbnb Inc . (NASDAQ:ABNB), reiterating an Outperform rating and a $185.00 price target for the company’s shares. With the stock currently trading at $126.15, and analyst targets ranging from $95 to $200, this represents significant potential upside. The endorsement follows a comprehensive analysis of Airbnb’s operational metrics, which suggests a promising outlook for the company’s growth and profitability. According to InvestingPro data, six analysts have recently revised their earnings estimates upward for the upcoming period.
In a detailed review, Mizuho highlighted several key findings that underpin their favorable rating. Firstly, the firm anticipates that Airbnb’s path to fiscal year 2025 (FY25) room night growth is constructive, with potential for upside. This optimism is supported by the company’s impressive revenue growth of 11.95% over the last twelve months and strong financial health score of GOOD on InvestingPro. Additionally, Airbnb’s strategic growth investments in new markets, the relaunch of its experiences offering, and reinvestment in core markets are expected to serve as diverse drivers for top-line growth.
The analysis also pointed to Airbnb’s impressive operating leverage, which stems from efficiency gains and what Mizuho deems conservative guidance for FY25 EBITDA margins, based on historical performance. The company has demonstrated strong operational efficiency with an outstanding gross profit margin of 83.08% and current EBITDA of $2.58 billion. Looking ahead to fiscal year 2026 (FY26), Mizuho forecasts that Airbnb’s adoption of artificial intelligence to automate customer service will provide another significant source of operating leverage.
Based on their findings, Mizuho analysts have increased their projection for FY25 room night growth from 9% to 10%, placing them one point ahead of the consensus. The firm maintains its long-term estimates, which are above the general market expectations. The potential for Airbnb to outperform in room nights and the conservative EBITDA margin guidance are seen as potential catalysts for the stock.
The Outperform rating and price target of $185 are rooted in an 18 times multiple of Mizuho’s fiscal year 2027 (FY27) EBITDA estimate for Airbnb. This target reflects confidence in the company’s future financial performance and its ability to capitalize on the identified growth opportunities.
In other recent news, Airbnb Inc. reported a robust financial performance for the fourth quarter of 2024, with revenue increasing by 12% year-over-year to $2.5 billion. The Gross Booking (NASDAQ:BKNG) Value rose 13% to $17.6 billion, driven by a 12% increase in Nights and Experiences Booked. Airbnb also ended the year with over 5 million hosts and more than 8 million active listings globally. Jefferies upgraded Airbnb’s stock rating to Buy and raised the price target to $185, citing the company’s potential to capture a larger share of the lodging market. Similarly, Bernstein reiterated an Outperform rating with a $185 target, highlighting Airbnb’s growth potential despite recent market share losses. DA Davidson increased its price target to $170, maintaining a Neutral rating, and noted Airbnb’s strong fourth-quarter performance. Tigress Financial Partners raised Airbnb’s price target to $200, maintaining a Buy rating and emphasizing the company’s strategic initiatives and share repurchase activities. These developments reflect the investment community’s recognition of Airbnb’s growth trajectory and strategic positioning in the travel industry.
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