The resilience of Airbnb Inc. In light of an ongoing slowdown in travel due to the pandemic, as well as his position relative to peers, Friday led to positive reviews of his first earnings report from analysts and soaring stock prices.
Airbnb ABNB,
stocks gained a whopping 17.6% during Friday’s trading session before ending the day 13.3% higher at $ 206.35. The shares had their best day since the company’s IPO in December, just one day after their worst-ever trading session.
The online travel booking site, whose accommodation choices consist mainly of houses or rooms in houses, reported profit results Thursday that exceeded expectations, prompting analysts like Jefferies’ to call the company “ the best asset in travel. ” Jefferies, which has a buy rating on the stock, raised its price target from $ 182.06 to $ 210.
Despite a loss of nearly $ 4 billion in the fourth quarter, Airbnb posted revenue, bookings and overnight growth that exceeded expectations.
“As the company’s first quarter ended, Airbnb showed that the recovery in travel demand is almost double that of its peers with gross bookings of -31% vs. 2019 levels compared to bookings of -65% and Expedia by -67%, ”Sandler of Barclays wrote in a note to investors, comparing Airbnb to rival online travel companies Booking Holdings Inc. BKNG,
and Expedia Group Inc. EXPE,
Barclays, which has an equal rating on Airbnb’s stock, raised its target price from $ 140 to $ 180.
Sandler isn’t alone in thinking Airbnb has an advantage over its competitors.
“The results / guidance from Airbnb stands out in a still very difficult travel environment,” wrote Jake Fuller of BTIG Research, which has a neutral rating on the stock. “We expect this year to see a continued preference for alternative accommodation over traditional accommodation, with ongoing safety concerns still persisting.”
While most analysts have been impressed with the company’s results, they have persisted concerns and more tempered suggestions about the stock.
“While we are favorable to Airbnb’s outlook, supply / demand factors and competition could shift significantly after the pandemic,” wrote Wells Fargo’s Brian Fitzgerald, while also voicing concerns about a partial stock blockage, which Wells considered equal. weight. “Since the stock is well above the IPO price and meets the conditions for the ‘second release period,’ we believe 27.8 million shares will be eligible for sale on Monday, March 1.”
Mizuho’s James Lee, who maintained his neutral rating on the stock while raising his price target from $ 150 to $ 176, said, “We’d rather wait for a more attractive entry point,” while Raymond James’s Aaron Kessler wrote, “We believe that shares are reasonably valued at the current level. “
At least 17 of the 34 analysts tracked by FactSet increased their stock price targets after the earnings report, bringing the average price target to $ 183.96, which is still more than 10% below going prices. The majority analysts view the stock as the equivalent of a hold, with 11 calling it a buy, 20 calling it a hold, and three calling the stock a sell.