On Tuesday, DA Davidson updated its financial outlook on Airbnb Inc . (NASDAQ:ABNB), increasing the company’s price target from $131.00 to $170.00. The firm has decided to maintain a Neutral rating on the stock, following Airbnb’s robust performance in the fourth quarter of 2024. According to InvestingPro data, the stock has surged 20% in the past week, with current analyst targets ranging from $85 to $190.
Airbnb’s fourth-quarter results surpassed expectations, with key metrics including nights booked, gross bookings, revenue, and adjusted EBITDA all exceeding forecasts. The quarter was marked by a 12% year-over-year increase in total nights booked, a figure that gained momentum as the quarter advanced. The company maintains impressive gross profit margins of 83%, with InvestingPro analysis revealing strong financial health scores across multiple metrics. Subscribers can access 14+ additional ProTips and comprehensive valuation analysis.
The company’s guidance for the first quarter of 2025 also indicates a positive trajectory, with expected Nights growth of 8.5%, or 9.5% when adjusting for the Leap Day in the previous year. Revenue growth is anticipated to be between 10% and 12%, excluding Leap Year and foreign exchange effects, although it is projected to be between 4% and 6% on a reported basis. The company’s strong balance sheet shows more cash than debt, with a healthy current ratio of 1.69.
Airbnb’s core accommodations business showed significant strength, with the fourth quarter witnessing an acceleration in all regions. Markets where Airbnb is expanding grew twice as fast as core markets. The company also saw encouraging supply trends, with co-hosting emerging as a new driver for growth and retention in its accommodation offerings.
The analyst at DA Davidson highlighted these positive developments in their commentary, noting the solid performance and strong trends that are shaping Airbnb’s business. The updated price target reflects the analyst’s recognition of Airbnb’s strong quarter and promising guidance for the upcoming period.
In other recent news, Airbnb has been the subject of several analyst reports. Financial firm Susquehanna raised its price target for Airbnb to $200, maintaining a positive view of the company. This followed Airbnb’s strong fourth-quarter performance and improvements in its product offerings.
Benchmark analysts also increased their price target on Airbnb to $178, reflecting the company’s robust fourth-quarter earnings and optimistic outlook for the first quarter of 2025. They highlighted a significant shift in Airbnb’s strategy towards operating as a marketplace, favoring partnerships and open collaboration.
DA Davidson raised its price target to $170, reflecting Airbnb’s improved growth profile. However, the firm maintained a neutral rating due to valuation concerns. Bernstein SocGen Group also signaled confidence in Airbnb, raising its price target to $185 and reaffirming an outperform rating. This followed Airbnb’s announcement of plans to expand its product offerings.
Finally, Cantor Fitzgerald increased the price target for Airbnb shares to $130, despite the company’s first-quarter guidance falling short of Wall Street’s expectations. The firm maintained an underweight rating on the stock. These are the latest developments in Airbnb’s financial performance and market position.
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