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On Friday, UBS analyst Stephen Ju adjusted the price target for Airbnb Inc . (NASDAQ: NASDAQ:ABNB) stock to $137, a slight decrease from the previous $138, while keeping a Neutral stance on the company. According to InvestingPro data, analyst targets for Airbnb currently range from $95 to $200, with the company maintaining a "GREAT" financial health score of 3.19 out of 5. Ju’s analysis pointed out that Airbnb’s higher reliance on the North American market, where consumer confidence has been waning, was a factor in the company’s second quarter guidance falling short of expectations. Despite the majority of travel in the U.S. being domestic, there has been a noted decline in travel demand from foreign visitors to the U.S., which constitutes approximately 2%-3% of Airbnb’s total business. Still, InvestingPro data shows the company maintains impressive gross profit margins of 83% and holds more cash than debt on its balance sheet, indicating strong operational efficiency. Get access to 10+ more exclusive InvestingPro Tips for ABNB.
Airbnb’s recent performance reflects the broader economic climate, with the company noting the impact of reduced international visits to the U.S. However, the company is not solely at the mercy of external factors. The management team at Airbnb is looking to boost volume growth through improvements to their technology platform and the rollout of new products, such as the Experiences feature, which is expected to be part of its Summer Release later this month. Additionally, Airbnb’s growth in global markets outside its core countries has been noteworthy, marking the fifth consecutive quarter of growth in these regions. Brazil, in particular, has shown significant acceleration.
The UBS analyst has modestly lowered the growth forecasts for Airbnb’s Nights and Experiences for 2026, leading to an approximate 1% reduction in the adjusted EBITDA forecast for 2026 and a 2% reduction for 2027. This revision in growth projections is reflected in the slight adjustment of the price target to $137 from $138. Despite these changes, the Neutral rating on the stock remains unchanged, indicating a wait-and-see approach to the company’s stock performance in the near term. With revenue growth of nearly 12% and an EBITDA of $2.58 billion in the last twelve months, InvestingPro’s Fair Value analysis suggests the stock is currently slightly undervalued. Discover comprehensive valuation metrics and expert analysis in the Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Airbnb’s first-quarter results have drawn varied reactions from analysts. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) exceeded expectations, with Cantor Fitzgerald noting a $60 million outperformance. Despite this, Cantor Fitzgerald has lowered its price target to $100, maintaining an Underweight rating, due to anticipated softness in the U.S. market and a modest deceleration in booked room nights. Similarly, Evercore ISI reduced its price target to $145, citing mixed first-quarter results and a less optimistic outlook for the second quarter. In contrast, DA Davidson and Benchmark both maintain a Buy rating, with DA Davidson setting a $155 price target, expressing confidence in Airbnb’s valuation and growth potential.
Goldman Sachs has also adjusted its price target, raising it to $139 while keeping a Neutral rating, acknowledging Airbnb’s strong financial performance and potential growth opportunities in expanding markets. The company is set to relaunch its Experiences platform and is considering adding traditional hotel inventory, which could influence its trajectory. Airbnb’s management remains confident in its strategic positioning and long-term EBITDA margin guidance of 34.5% by FY25. These developments underscore the diverse perspectives among analysts regarding Airbnb’s future prospects amid a complex travel industry landscape.
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