Analyst Richard Clarke of Bernstein maintained a Buy rating on Airbnb, retaining the price target of $165.00.
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Richard Clarke has given his Buy rating due to a combination of factors that highlight Airbnb’s strategic expansion into the hotel market. The company’s renewed focus on hotels, as indicated by CEO Brian Chesky, suggests a significant growth opportunity. This move is not entirely new, as Airbnb has previously engaged in partnerships and acquisitions within the hotel sector, but the recent emphasis signals a substantial potential to tap into a market that is considerably larger than its current operations.
By entering the hotel market, Airbnb can potentially address a significant portion of the $1.2 trillion global lodging industry, which is over 13 times its current gross volume. The expansion is expected to enhance Airbnb’s ability to convert searches into bookings, thereby increasing its EBITDA significantly with minimal marketing costs. Additionally, the strategic approach of not bidding on hotel keywords but leveraging existing customer loyalty could provide hotels with incremental demand at a lower commission cost, making this a mutually beneficial venture.
In another report released on September 3, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $144.00 price target.