On Wednesday, Cantor Fitzgerald confirmed its Underweight rating on Airbnb Inc . (NASDAQ:ABNB), currently trading at $139.48 with a market capitalization of $86 billion, maintaining a price target of $100.00. The stock has shown remarkable momentum, gaining over 12% in the past week according to InvestingPro data. The firm’s assessment followed Airbnb’s Summer Release event, which unveiled new experiences and services, alongside an app redesign aimed at enhancing social interactions. The updates are expected to broaden Airbnb’s appeal beyond its core accommodation offerings and significantly increase its total addressable market (TAM). The company’s strong financial health score of "GREAT" from InvestingPro and impressive gross profit margin of 83% suggest it’s well-positioned to execute on these initiatives.
The new features are prominently displayed on the app’s home screen, underlining their potential long-term significance. Although Airbnb has not provided a total supply count for these additions, preliminary research by Cantor Fitzgerald suggests that the density of experiences in the top 10 markets is competitive when compared to other platforms.
The analyst expressed a positive view of Airbnb’s ongoing innovation within the travel industry. Nonetheless, the firm anticipates that it will take multiple quarters for the financial impact of these new products to become evident. The reiteration of the Underweight rating is attributed to Airbnb’s valuation, which Cantor Fitzgerald considers high relative to its peers, given a similar growth trajectory. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with elevated multiples across various metrics. Discover 12 additional key insights and comprehensive valuation analysis with an InvestingPro subscription.
In other recent news, Airbnb has announced the launch of Airbnb Services, Airbnb Experiences, and a redesigned app aimed at enhancing the travel experience for users. These new services offer amenities such as in-home meals, personal training, and cultural experiences hosted by locals in 650 cities worldwide. Meanwhile, Phillip Securities has downgraded Airbnb’s stock rating from Neutral to Reduce, citing high valuations compared to industry peers. The firm maintains a target price of $112, despite slightly lowering profit projections due to anticipated decreases in interest income. On a more positive note, DA Davidson has reaffirmed a Buy rating with a $155 target, highlighting Airbnb’s strong performance in adjusted EBITDA despite some softness in the U.S. market.
Susquehanna has also adjusted its outlook, reducing the price target from $200 to $150 but maintaining a Positive rating, emphasizing Airbnb’s market positioning and growth potential with new product lines. UBS has lowered its price target to $137 while maintaining a Neutral rating, noting the impact of reduced international travel to the U.S. and the company’s efforts to boost growth through technology enhancements. These developments reflect Airbnb’s strategic initiatives and the varying analyst perspectives on its financial health and market position.
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