Airbnb Inc.’s resilience in the face of a continuing slowdown in travel due to the pandemic, as well as its position against its peers, led to positive reviews of its first analyst earnings report and rising share prices on Friday.
Airbnb ABNB,
the shares gained up 17.6% on Friday’s trading session, before ending the day 13.3% higher at $ 206.35. The shares had their best day since the company’s initial public offering in December, just one day after its worst trading session so far.
The online travel booking website, whose accommodation options consist mainly of homes or rooms in homes, reported earnings results that exceeded expectations on Thursday, prompting analysts like Jefferies to call the company “the best asset in trips”. Jefferies, which has a buy rating for the shares, raised its target price from $ 182.06 to $ 210.
Despite a loss of nearly $ 4 billion in the fourth quarter, Airbnb reported revenue, reserves and nightly growth that exceeded expectations.
“As the company’s first quarter was launched, Airbnb showed that the recovery in travel demand is almost double that of its competitors with gross bookings of -31% compared to 2019 levels compared to bookings at -65% and Expedia at -67%, ”Ross Sandler of Barclays wrote in a note to investors, comparing Airbnb with rival online travel companies Booking Holdings Inc. BKNG,
and Expedia Group Inc. EXPE,
Barclays, which has an equal weight rating on Airbnb shares, raised its price target from $ 140 to $ 180.
Sandler is not alone in thinking that Airbnb has an advantage over its competitors.
“Airbnb’s results / guidelines stand out in a travel environment that is still very difficult,” wrote Jake Fuller of BTIG Research, who has a neutral rating on the shares. “We anticipate an ongoing preference for alternative accommodation over traditional accommodation options this year, with concerns still lingering about security.”
Although most analysts were impressed with the company’s results, they have persistent concerns and more moderate suggestions about the actions.
“While we are in favor of Airbnb’s prospects, demand / supply factors and competition can change significantly as we exit the pandemic,” wrote Brian Fitzgerald of Wells Fargo, while expressing concern about the partial expiration of the blockade for the stock, which Wells classifies as equal weight. “With the shares well above their IPO price, satisfying the conditions for the ‘second launch window’, we believe that 27.8 million shares will become eligible for sale on Monday, 3/1.”
James Lee of Mizuho, who maintained his neutral stock rating while raising his target price from $ 150 to $ 176, said: “We prefer to wait for a more attractive entry point”, while Aaron Kessler of Raymond James wrote: “We believe that shares quite valued at current levels.”
At least 17 of the 34 analysts followed by FactSet increased their stock price targets after the earnings report, pushing the average price target to $ 183.96, which is still more than 10% below current rates. Most analysts consider the shares the equivalent of a retention, with 11 calling it a purchase, 20 labeling the retention shares and three classifying the shares as a sale.