BTIG analyst Jake Fuller has maintained their neutral stance on ABNB stock, giving a Hold rating on August 26.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Jake Fuller has given his Hold rating due to a combination of factors surrounding Airbnb’s recent transition to a host-pay fee model. This change is seen as a move towards simplifying pricing, but it does not represent an increase in Airbnb’s take-rate. The shift involves hosts using property management systems or channel management software moving to a structure where they bear the full fee, while guests pay no additional fees. Despite this change, the overall economics remain the same, with hosts adjusting their listing prices to maintain their earnings, and guests ultimately paying the same total amount.
Fuller notes that while there could be some resistance from hosts concerned about potential reduced earnings, the unit economics for hosts, guests, and Airbnb remain unchanged. The new model offers a more straightforward pricing structure, aligning the price set by hosts with the price paid by guests. Importantly, this transition does not reflect Airbnb’s ability to increase its take-rate, which has been a part of the bullish case for the company. Consequently, Fuller’s valuation analysis suggests a fair value range for Airbnb’s stock, but he maintains a Hold rating as the changes do not significantly alter the company’s financial outlook.
Fuller covers the Consumer Cyclical sector, focusing on stocks such as Expedia, TripAdvisor, and DoorDash. According to TipRanks, Fuller has an average return of 8.0% and a 54.86% success rate on recommended stocks.
In another report released on August 26, Bank of America Securities also maintained a Hold rating on the stock with a $146.00 price target.