Tigress raises Airbnb stock price target to $200, maintains Buy rating

On Friday, Tigress Financial Partners adjusted its outlook on Airbnb Inc . (NASDAQ:ABNB), raising the 12-month price target to $200 while retaining a Buy rating on the stock. This target represents the highest among analysts, who have set targets ranging from $95 to $200, with InvestingPro data showing a 34% potential upside from current levels. The firm highlighted Airbnb’s strong performance amid favorable travel trends and the company’s strategic initiatives aimed at expanding its ecosystem. The firm’s analyst cited Airbnb’s preparation to launch significant upgrades in May and partnerships with local and global brands as positive factors.

Airbnb’s financial results from the fourth quarter of 2024 were robust, with revenue climbing 12% year-over-year to $2.5 billion, propelled by an increase in night stays. The company maintains impressive gross profit margins of 83%, according to InvestingPro data, demonstrating strong operational efficiency. The Gross Booking (NASDAQ:BKNG) Value (GBV) for the quarter rose 13% year-over-year to $17.6 billion, underpinned by a surge in Nights and Experiences Booked and a slight 1% rise in Average Daily Rate (ADR) to $158. The quarter also saw Nights and Experiences Booked jump 12% year-over-year to 111.0 million, marking the highest growth quarter of the year, with significant acceleration across all regions.

Airbnb concluded 2024 with a milestone of over 5 million hosts and more than 8 million active listings globally, noting growth in both urban and non-urban destinations. The regions of Latin America and Asia Pacific, where demand is highest, experienced the most significant expansion. Throughout 2024, Airbnb introduced 535 new features and upgrades to enhance the Host and Guest experiences, including the launch of the Co-Host Network, which assists hosts in managing their listings by connecting them with local co-hosts.

The company is also focusing on leveraging artificial intelligence to improve user experiences and drive growth. Airbnb plans to invest between $200 and $250 million in 2025 to start a new travel-related business in May and integrate more AI functionalities across its platform. These efforts are expected to augment Airbnb’s leading position in the travel industry by offering diverse accommodations and catering to the preference for unique and extended stays.

In terms of shareholder value, Airbnb has been active in repurchasing shares, with $838 million worth of stock bought back in the fourth quarter and a total of $3.4 billion for the full year of 2024. The company still has $3.3 billion remaining in its repurchase authorization. InvestingPro analysis shows the company holds more cash than debt on its balance sheet and maintains a healthy current ratio of 1.69, indicating strong financial flexibility. Tigress Financial Partners believes that Airbnb’s booking fee income growth will significantly enhance Return on Capital and Economic Profit, thereby creating greater value for shareholders. The firm remains confident in Airbnb’s potential for further growth, with the new price target reflecting an approximate 70% potential return from current levels. For deeper insights into Airbnb’s financial health and valuation metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Airbnb Inc. has been the focus of several analyst updates following its strong fourth-quarter performance. DA Davidson increased its price target for Airbnb from $131 to $170, maintaining a Neutral rating due to the company’s robust results, which included a 12% year-over-year increase in total nights booked. Similarly, Susquehanna raised its price target to $200, maintaining a Positive rating, and highlighted Airbnb’s strong travel demand and product improvements, despite slightly conservative forward guidance. Jefferies upgraded Airbnb’s stock rating from Hold to Buy, raising the price target to $185, citing the company’s unique position to benefit from trends in travel experiences and sponsored listings.

Bernstein also reiterated an Outperform rating with a $185 target, expressing confidence in Airbnb’s growth potential despite recent market share losses. The analyst noted Airbnb’s strategic investments and expansion into new areas, which could contribute to its long-term financial success. These developments come amid a backdrop of broader travel industry concerns, as major airlines like Delta and American Airlines (NASDAQ:AAL) have revised their profit forecasts downward due to economic uncertainties. Despite these industry-wide challenges, Airbnb’s strategic initiatives and positive analyst outlooks suggest potential for continued growth in the coming years.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.