Needham analyst Bernie McTernan has reiterated their neutral stance on ABNB stock, giving a Hold rating today.
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Bernie McTernan has given his Hold rating due to a combination of factors surrounding Airbnb’s recent performance and future outlook. The company reported better-than-expected results for the second quarter, albeit against lowered expectations, which led to only a modest increase in annual estimates. This cautious adjustment is attributed to anticipated challenges in the fourth quarter, making it difficult for Airbnb to maintain its previous rapid growth trajectory.
Additionally, while Airbnb’s valuation has decreased, there remains uncertainty about the impact of its expansion into services and experiences on its long-term growth. McTernan notes that the company’s EBITDA growth is expected to align with bookings growth, which could constrain potential for multiple expansion. These considerations collectively contribute to the Hold rating, reflecting a balanced view of Airbnb’s current market position and future prospects.
According to TipRanks, McTernan is a 4-star analyst with an average return of 7.8% and a 51.70% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as Super Group (SGHC), Flutter Entertainment PLC, and DraftKings.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $130.00 price target.