Things have been somewhat shaky for unconventional travel host Airbnb (NASDAQ:ABNB), as it’s seen a return of interest in travel right about the same time that consumers started pulling in their collective wallets. In addition, some places started to turn against the company. Now, Airbnb stock gained fractionally in Tuesday afternoon trading, as analysts are starting to question the general premise of Airbnb as well.
Seaport Research Partners, via analyst Aaron Kessler, started coverage on Airbnb at Neutral and wouldn’t establish a price target. Kessler noted that, so far, Airbnb has made a lot of hay while the sun shines, as its worldwide brand awareness has given Airbnb a leg up. That, in turn, has given Airbnb new revenue, new listing opportunities, and significant contributions to earnings and cash flow. Meanwhile, Kessler also looks for a roughly 12% bookings growth rate in 2024.
There are others, of course, who are less optimistic. It’s been one month since New York City officially cracked down on Airbnb after discovering that numerous apartments were effectively being sublet as temporary hotel rooms. The impact of Local Law 18 was felt almost immediately, as available short-term rentals plunged over 85% and hotel stay prices surged. Though it’s hard to make any complete comparisons, as reports note that the city’s average apartment rental price was around a record high just months ago, so a decline in that rate may be skewing results in one direction or another.
Is Airbnb a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ABNB stock based on 11 Buys, 17 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ABNB price target of $148.958 per share implies 22.81% upside potential.
