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Airbnb Faces 25% Price Target Cut As Travel Demand Pulls Back From Peak Levels

  • Tigress Research analyst Ivan Feinseth reiterated a Buy rating on the shares of Airbnb Inc ABNB and lowered the price target to $160 from $214.
  • The cut in price target comes as the analyst regards that travel demand has pulled back from the highs.
  • Even though the company reported lower-than-expected gross volume bookings, Q2 results highlighted growth, profitability, and business confidence with its $2 billion share repurchase authorization. 
  • Feinseth regards long-term stays of twenty-eight days or more continue to be Airbnb’s fastest-growing category, and it remains best positioned to accommodate long-term stays.
  • Also ReadJeff Bezos Double Dips On His Airbnb Play
  • The analyst flags rolling COVID-19 shutdowns and travel restrictions in China as well as a potential negative impact of the ongoing war in Ukraine and travel to Europe as potential risks.
  • Continued strength in Nights & Experiences Booked in North America, EMEA, and Latin America remains a major positive growth factor for the company.
  • Feinseth thinks the company’s investment initiatives in new technologies, cobranded buildings, branding opportunities, expanding partnerships with travel service providers, and increasing international expansion are all strong drivers of future growth.
  • Price Action: ABNB shares are trading lower by 2.47% at $101.16 on the last check Friday.

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