Airbnb grows after earnings as analyst calls ‘best travel asset’

Shares of Airbnb rose to 16% on Friday, following reports from analysts, who point out that the company is well positioned to capitalize on the expected recovery in the tourism industry.

Jefferies, Canaccord Genuity and Mizhuo Securities raised their price targets for Airbnb after the company unveiled its first earnings report from its initial public offering in December on Thursday. The company posted a net loss of $ 3.89 billion, largely attributed to its IPO-related expenses, but posted fourth-quarter revenue of $ 859 million, ahead of analysts’ expectations of $ 748 million.

“We continue to believe that ABNB remains the best asset in travel, and we like the fact that cost reductions have positioned the company well for travel recovery,” wrote Jefferies, who raised its Airbnb price target from $ 170 to $ 210. .

In its report, Mizuho wrote that it expects room night trends for Airbnb to return to company levels in 2019 in the second half of 2021. Mizuho raised its Airbnb price target from $ 150 to $ 176.

“Moving to 1Q21, we expect the night’s trends to improve, with a significant recovery in 2H21,” Mizuho wrote.

Meanwhile, Canaccord Genuity has raised its target price for Airbnb from $ 175 to $ 220. Canaccord Genuity has specifically highlighted a marketing campaign announced by Airbnb executives to recruit more hosts for the service.

“Recharged travel desires and the trend of working from anywhere have already led to lower supply availability in North America, and management plans a material return of travel this year, prioritizing expanding supply, including a marketing plan for hosts and a host simplification on board, “wrote Canaccord Genuity.