Airbnb Resistance Inc. In the face of a continuing slowdown in travel due to the pandemic, as well as its position vis-à-vis colleagues, on Friday led to positive reviews of its first earnings report and rising stock prices.
Airbnb ABNB,
the stock gained up 17.6% in trading on Friday before ending the day 13.3% higher at $ 206.35. The shares had their best day since the company’s first public offering in December, just one day after the worst trading session so far.
The online travel booking site, whose accommodation options consist mainly of houses or rooms in houses, reported earnings results that exceeded expectations on Thursday, prompting analysts such as Jefferies to call the company “the best asset.” in travel ”. Jefferies, which has a buy-per-share rating, raised its target price from $ 182.06 to $ 210.
Despite a loss of nearly $ 4 billion in the fourth quarter, Airbnb posted revenue, bookings and night-room growth that exceeded expectations.
“As the first quarter of the company came out of the gate, Airbnb showed that the recovery in travel demand is almost double compared to its colleagues, with gross bookings -31% compared to 2019 levels compared to Booking at -65% and Expedia at -67% ”, Ross Sandler from Barclays wrote in a note addressed to investors, comparing Airbnb with rival online travel companies Booking Holdings Inc. BKNG,
and Expedia Group Inc. EXPE,
Barclays, which has an equal share of Airbnb shares, raised its target price from $ 140 to $ 180.
Sandler is not the only one who believes that Airbnb has an advantage over its competitors.
“Airbnb results / guidance stand out in a still very difficult travel environment,” wrote Jake Fuller of BTIG Research, which has a neutral stock rating. “We expect a continuing preference for alternative accommodations to traditional accommodation options this year, with persistent security issues.”
Although most analysts were impressed with the company’s results, they have persistent concerns and more temperate suggestions about actions.
“While we are in favor of the Airbnb outlook, demand / supply factors and competition could change significantly as we emerge from the pandemic,” wrote Brian Fitzgerald of Wells Fargo, while expressing concern about the partial expiration of the stock freeze, which Wells consider it as an equal weight. “With the stock well above its IPO price, satisfactory conditions for the ‘second launch window’, we believe that 27.8 MM shares will become eligible for sale on Monday 3/1.”
James Lee of Mizuho, who maintained its stock-neutral rating while raising its price target from $ 150 to $ 176, said, “We’d rather wait for a more attractive entry point.” while Aaron Kessler of Raymond James wrote: “We think the stock is quite appreciated at current levels. ”
At least 17 of the 34 analysts tracked by FactSet raised their stock price targets after the earnings report, pushing the average target price to $ 183.96, which is still more than 10% below current rates. Majority analysts consider the share to be the equivalent of a holding, 11 calling it a purchase, 20 shares labeling a holding and three evaluating the share as being sold.