Airbnb co-founder and CEO Brian Chesky speaks during an interview in Langa Township, Cape Town, South Africa, on March 17, 2017.
Mike Hutchings | Reuters
Shares of Airbnb rose to 16% on Friday after several analyst reports highlighted that the company is well positioned to capitalize on the expected recovery in the travel industry.
Jefferies, Canaccord Genuity and Mizhuo Securities raised their pricing targets for Airbnb after the company filed its first earnings report on Thursday since its initial public offering in December. The company posted a net loss of $ 3.898 billion, primarily attributable to charges related to its IPO, 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 that the cost reductions have positioned the company well for travel recovery,” wrote Jefferies, who raised its pricing target for Airbnb from $ 170 to $ 210.
In its report, Mizuho wrote that it expects Airbnb’s nightly trends to return to company levels in 2019 in the second half of 2021. Mizuho raised its Airbnb pricing target from $ 150 to $ 176.
“Looking ahead to 1Q21, we expect room night trends to improve with a significant recovery in 2H21,” Mizuho wrote.
Meanwhile, Canaccord Genuity raised Airbnb’s target price from $ 175 to $ 220. Canaccord Genuity specifically highlighted a marketing campaign announced by Airbnb executives to recruit more hosts for the service.
“Accumulated travel desires and the tendency to work from anywhere have already led to lower supply availability in North America, and management is planning a material rebound in travel this year prioritizing supply expansion, including a marketing plan aimed at hosts and a simplification of host incorporation, ”Canaccord Genuity wrote.