Investing.com – Airbnb stock (NASDAQ:ABNB) rose 5% Tuesday after Cowen upgraded it to outperform with a $220 target, an upside of more than 25% from its current price.
According to the brokerage’s Kevin Kopelman, the industry has likely undergone changes that are permanent and which the Street isn’t appreciating yet.
Kopelman pointed out that Airbnb pioneered the hotel-to-homes shift by creating a trusted platform for both urban apartments and vacation homes. At $47 billion in alternative gross booking value in estimates for the current year, Cowen estimates Airbnb at more than 50% share and growing among the global online travel agents.
The analyst estimates alternative lodging increased its market share of the global lodging industry by a little less than half to 33% now to nearly regain its 2019 peak of around $200 billion.
Kopelman expects the alternative lodging industry to hold on to its gains, assuming it to be only partially tempered by hotel-focused business travel recovery.