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Investing.com - UBS lowered its price target on Airbnb Inc . (NASDAQ:ABNB) to $148.00 from $156.00 while maintaining a Neutral rating. According to InvestingPro data, analyst targets for Airbnb range from $96 to $200, with the company currently trading at elevated multiples across several metrics.
The adjustment follows Airbnb’s second quarter 2025 performance, which showed Nights and Seats growth of 7%, lagging behind competitor Booking (NASDAQ:BKNG)’s 8% growth despite Booking being more than twice Airbnb’s size. Despite slower growth, InvestingPro data shows Airbnb maintains impressive gross profit margins of 83% and has generated $4.4 billion in free cash flow over the last twelve months.
UBS analyst Lloyd Walmsley noted that Booking’s alternative accommodation nights now appear to be approximately 85% the size of Airbnb’s, raising questions about potential market share loss and valuation multiple differences between the companies.
On a positive note, UBS highlighted that Airbnb’s expansion markets grew for the sixth consecutive quarter, with notable success in Brazil, Japan, and Germany.
The firm’s 2026 and 2027 Gross Booking estimates for Airbnb increased modestly by 0.5%, driven mostly by Average Daily Rate (ADR), while Adjusted EBITDA forecasts decreased by 3% and 1% respectively, contributing to the price target reduction.
In other recent news, Airbnb Inc. reported its second-quarter 2025 earnings, which exceeded analyst expectations. The company posted an earnings per share (EPS) of $1.03, surpassing the forecasted $0.93, marking a 10.75% surprise. Revenue for the quarter reached $3.1 billion, which was higher than the anticipated $3.03 billion. Despite these positive financial results, Airbnb’s stock experienced a decline in premarket trading. Additionally, Wells Fargo (NYSE:WFC) recently adjusted its price target for Airbnb to $110 from $111, maintaining an Underweight rating. The firm cited slower growth in Airbnb’s core markets as a reason for the adjustment. These developments highlight recent challenges and successes faced by Airbnb.
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