The resistance of Airbnb Inc. in the face of the continued slowdown in travel due to the pandemic, as well as its stance on peers, led on Friday to positive reviews of its first analyst earnings report.
Airbnb ABNB,
shares gained as much as 17.6% in Friday’s trading session before ending the day up 13.3%, to $ 206.35. The shares had their best day since the company’s initial public offering in December, just one day after its worst trading session to date.
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 rating on the stock, raised its target price from $ 182.06 to $ 210.
Despite a loss of nearly $ 4 billion in the fourth quarter, Airbnb posted overnight revenue, bookings and growth that exceeded expectations.
“When the company’s first quarter came out the door, Airbnb showed that the recovery in travel demand is almost double that of its peers, with gross bookings -31% vs. 2019 levels compared to Booking at -65% and Expedia at -67%, ”Ross Sandler of Barclays wrote in a note to investors, comparing Airbnb to rival online travel companies Booking Holdings Inc. BKNG,
and Expedia Group Inc. EXPE,
Barclays, which has a valuation equal to Airbnb shares, raised its price target from $ 140 to $ 180.
Sandler isn’t the only one to think Airbnb has an edge over its competitors.
“Airbnb’s results / guides stand out in a still very difficult travel environment,” wrote Jake Fuller of BTIG Research, which has a market-neutral valuation. “We anticipate a continuing preference for alternative accommodations compared to traditional accommodation options this year, with security issues still persisting.”
While most analysts were impressed by the company’s results, they have persistent concerns and more temperate suggestions about stocks.
“While we are in favor of Airbnb’s outlook, demand / supply factors and competition could change significantly as we emerge from the pandemic,” wrote Brian Fitzgerald of Wells Fargo, and also expressed concern about a partial expiration of the closing of the shares, which Wells values as equal weight. “With the shares well above their IPO, which meets the conditions for the ‘second launch window’, we believe 27.8MM of shares will be able to be sold on Monday 3/1.”
James Lee of Mizuho, who maintained his stock-neutral rating while raising the target price from $ 150 to $ 176, said he “would rather wait for a more attractive entry point,” while Raymond James’ Aaron Kessler he wrote: “We believe the stocks are quite valued at current levels.”
At least 17 of the 34 analysts tracked by FactSet raised their stock price targets after the earnings report, raising the average price target to $ 183.96, which is still more than 10% below rates current. Majority analysts consider the shares to be the equivalent of a withholding, with 11 calling it a buyout, 20 labeling shares and three qualifying the sale shares.