Airbnb co-founder and CEO Brian Chesky speaks during an interview in the municipality of Langa, Cape Town, South Africa on March 17, 2017.
Mike Hutchings | Reuters
Airbnb’s shares rose up to 16% on Friday after a series of analyst reports highlighting that the company is well positioned to capitalize on the expected recovery in the travel industry.
Jefferies, Canaccord Genuity and Mizhuo Securities raised their price targets for Airbnb after the company delivered its first earnings report on Thursday since its initial public offering in December. The company posted a net loss of $ 3.89 billion, largely attributable to charges related to its IPO, but recorded revenue in the fourth quarter of $ 859 million, above analysts’ expectations of $ 748 million.
“We continue to believe that ABNB remains the best travel asset and we like the fact that cost reductions have positioned the Company well for travel recovery,” wrote Jefferies, who raised his target price for Airbnb by $ 170 to $ 210.
In its report, Mizuho wrote that it expects Airbnb’s overnight room trends to return to the company’s 2019 levels in the second half of 2021. Mizuho raised its target price for Airbnb from $ 150 to $ 176.
“Going into 1Q21, we expect nighttime trends to improve with a significant recovery in 2H21,” wrote Mizuho.
Meanwhile, Canaccord Genuity raised Airbnb’s target price from $ 175 to $ 220. Canaccord Genuity specifically highlighted a marketing campaign announced by Airbnb executives to recruit more hosts for the service.
“Suppressed travel cravings and the tendency to work from anywhere have already led to less supplies being available in North America, and management is planning a significant recovery in travel this year, prioritizing expansion of supply, including a marketing to hosts and simplifying host integration, “wrote Canaccord Genuity.