Airbnb (ABNB – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Ken Gawrelski from Wells Fargo maintained a Sell rating on the stock and has a $104.00 price target.
Ken Gawrelski has given his Sell rating due to a combination of factors affecting Airbnb’s performance. The first quarter showed weaker-than-expected growth in nights booked, particularly in North America, which was only partially offset by stronger performance in Latin America. Despite a strong start in January, the following months showed volatility, and the outlook for the second quarter suggests further deceleration. This is compounded by a softer demand trend in North America, leading to a reduction in the growth forecast for the region.
Additionally, Gawrelski does not see the upcoming relaunch of Airbnb Experiences as a significant positive catalyst for the stock. Management has downplayed expectations for any substantial revenue contribution from this segment in 2025. While Airbnb is making efforts to expand its hotel inventory and international markets, these strategies are not expected to provide immediate substantial growth. Consequently, the revenue forecasts for 2025 and 2026 have been revised downwards, mainly due to slower growth in average daily rates, contributing to the Sell rating.
Gawrelski covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Snap. According to TipRanks, Gawrelski has an average return of 7.9% and a 62.88% success rate on recommended stocks.
In another report released today, Barclays also maintained a Sell rating on the stock with a $103.00 price target.