TD Cowen raises Airbnb stock price target to $150 on solid booking growth

Published 07/08/2025, 16:40
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Investing.com - TD Cowen has raised its price target on Airbnb Inc . (NASDAQ:ABNB) to $150.00 from $145.00 while maintaining a Buy rating on the stock. According to InvestingPro data, analyst targets for Airbnb currently range from $96 to $200, with 4 analysts recently revising their earnings estimates upward for the upcoming period.

The firm cited Airbnb’s second-quarter performance, which showed nights booked increased by 7.4%, exceeding TD Cowen’s expectation of 6% growth. This growth narrowed the gap between Airbnb and Booking Holdings (NASDAQ:BKNG)’ alternative accommodations segment to approximately 250 basis points, compared to roughly 400 basis points in the first quarter. The company’s strong execution is reflected in its impressive revenue growth of 10.23% over the last twelve months.

Airbnb’s third-quarter guidance indicates stable nights growth, though the company noted a challenging comparison for the fourth quarter, which saw a 380 basis point acceleration in the same period last year.

TD Cowen highlighted improved second-quarter margins driven by cost of goods sold leverage, though Airbnb maintained its full-year 2025 margin guidance of at least 34.5%, compared to 36.4% in 2024, reflecting planned second-half investments. InvestingPro analysis shows the company maintains exceptional gross profit margins of 83.23%, with an overall financial health score rated as GOOD. Discover more insights and 8 additional ProTips with an InvestingPro subscription.

The firm has increased its 2026 EBITDA margin forecast to 34.5% from 34.2% and raised its 2026 earnings per share estimate by 3%, with the new price target representing a price-to-earnings multiple of 33 times 2026 estimated earnings. The company currently trades at a P/E ratio of 29.77, with EBITDA reaching $2.66 billion in the last twelve months.

In other recent news, Airbnb Inc. has seen various analyst firms adjust their price targets and ratings following its second-quarter performance. BMO Capital raised its price target to $124, citing Airbnb’s solid results, with revenue and adjusted EBITDA surpassing consensus estimates by 2.5% and 5.5%, respectively. JPMorgan also increased its price target to $130, noting that the company’s results and outlook were largely in line with investor expectations, alongside promising progress in expanding beyond its core business. Meanwhile, Bernstein reiterated its Outperform rating with a target of $165, highlighting Airbnb’s resilient revenue growth of 10.5% in constant currency terms despite challenging macroeconomic conditions. In contrast, Cantor Fitzgerald lowered its price target to $110, maintaining an Underweight rating due to growth concerns. Benchmark maintained its Buy rating with a $155 target, appreciating the company’s growth in nights and seats, which met market expectations. These developments reflect a varied outlook among analysts on Airbnb’s future performance.

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