Airbnb’s Stock: Regulatory Challenges and Slowing Growth Lead to Hold Rating

In a report released yesterday, Justin Post from Bank of America Securities maintained a Hold rating on Airbnb (ABNB – Research Report), with a price target of $146.00.

Justin Post has given his Hold rating due to a combination of factors impacting Airbnb’s stock. One significant reason is the regulatory challenges in Spain, where the government has mandated the removal of over 65,000 listings that do not comply with local licensing requirements. Although this regulatory action is noteworthy, it is expected to have a minimal effect on Airbnb’s overall listings, given the company’s extensive global presence.
Additionally, Airbnb’s proactive measures to prevent disruptive parties through its anti-party technology demonstrate its commitment to maintaining a positive brand image and supporting hosts. While these efforts are beneficial, the overall growth in nights booked is slowing, and competitive pressures remain a concern. These elements contribute to the decision to maintain a Neutral stance, with a price objective slightly above the current trading price.

According to TipRanks, Post is a top 100 analyst with an average return of 22.6% and a 67.47% success rate. Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Alphabet Class C.