On Friday, Benchmark analysts increased their price target on Airbnb Inc . (NASDAQ:ABNB) to $178 from the previous figure of $150, while maintaining a "Buy" rating for the company's shares. The adjustment follows Airbnb's strong performance in the fourth quarter and an optimistic outlook for the first quarter of 2025, despite the volatility in the travel sector. With a current market capitalization of $101 billion and trading at a P/E ratio of 56, InvestingPro analysis suggests the stock is trading above its Fair Value.
Analysts noted Airbnb's robust fourth-quarter earnings, which were somewhat anticipated based on the performance of its peers. The company's first-quarter guidance was particularly impressive given the current industry challenges. Airbnb's management has also committed to a minimum margin of 34.5% for the year, even as they plan to invest $200-250 million in launching and scaling new ventures. InvestingPro data reveals an impressive gross profit margin of 83% and strong revenue growth of 12% over the last twelve months.
A significant shift in Airbnb's strategy was also highlighted by the analysts. The company has shown an increased willingness to operate as a marketplace, favoring partnerships and open collaboration over exclusively proprietary solutions. This move, along with the potential for an advertising business, reinforces the analysts' original long-term thesis regarding Airbnb's take rate.
While there may be some normalization of post-market excitement due to valuation considerations, the analysts believe that the recent developments have raised the baseline for Airbnb's valuation. This new price target reflects the analysts' confidence in Airbnb's growth trajectory and its strategic initiatives to expand its market presence.
In other recent news, Airbnb has been the focus of several notable adjustments by financial analysts. DA Davidson lifted its price target for Airbnb to $170, maintaining a neutral rating due to valuation concerns. Similarly, Bernstein SocGen Group raised its price target to $185, maintaining an outperform rating, buoyed by Airbnb's ambitious expansion plans. Cantor Fitzgerald also increased its price target for Airbnb to $130, despite maintaining an underweight rating due to uncertainties in the company's growth trajectory.
BofA Securities also raised its price target for Airbnb to $170, attributing this to the company's stable core margin outlook and the anticipation of new product launches. Meanwhile, Goldman Sachs upgraded Airbnb's stock rating from sell to neutral and raised its price target from $110 to $153, following Airbnb's impressive fourth-quarter performance. These are recent developments that highlight Airbnb's improved growth profile and promising expansion plans.
Airbnb's robust gross bookings and revenue, along with an adjusted EBITDA that exceeded estimates, have been influential in these revisions. The company's ambitious expansion plans and the introduction of new products in the near future have also been positively received by the market. Despite some concerns about valuation and clarity of growth trajectory, these adjustments reflect a generally optimistic view of Airbnb's future performance.
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