Analyst Justin Post of Bank of America Securities reiterated a Hold rating on Airbnb (ABNB – Research Report), reducing the price target to $146.00.
Justin Post has given his Hold rating due to a combination of factors impacting Airbnb’s performance. The company’s recent financial results showed a slight miss in nights and bookings, with growth in North America slowing to low single digits. Despite this, Airbnb’s revenue slightly exceeded expectations, and EBITDA was higher than anticipated, largely due to reduced sales and general administrative expenses.
However, the outlook for the second quarter indicates a deceleration in nights growth, which aligns with similar trends observed in the industry. The uncertainty in the macroeconomic environment, particularly in the U.S., poses a risk to travel bookings. While there is potential for a rebound in U.S. summer bookings if economic conditions improve, the overall sentiment remains cautious. Consequently, the stock’s valuation has been adjusted, reflecting these challenges and aligning more closely with industry peers.